Kraken joins crypto exodus with 15% layoffs

Kraken has reportedly laid off 15% of its workforce, according to two insiders, a New York Times journalist reported.

This week, Kraken exchange joined fellow crypto startups Consensys and DYDX in reducing headcount. The San Francisco-based firm welcomed new co-CEO in Tribe Capital co-founder Arjun Sethi and announced organizational disciplinary decisions to address the problems.

Although Mike Isaac of the New York Times, who first reported the news, did not specify the positions affected by the layoffs, Kraken’s press release and discussions on social media suggest that the cuts primarily affected senior staff and executives. According to a blog post, certain organizational structures were discouraging some team leaders from innovating.

We must ensure that our top contributors are focused on building rather than managing. This means we give our leaders more power to build best-in-class products, leverage data to make the best decisions for our customers, and empower engineering, product and design teams to feel more accountable for results.

Kraken declaration

kraken just cut 15% of its workforce, per two people inside

— rat king 🐀 (@MikeIsaac) October 30, 2024

Kraken has become the third US crypto company to cut its workforce, albeit for different reasons. MetaMask maker and Ethereum (ETH) infrastructure developer Consensys has reduced its staff by 20%. CEO Joe Lubin cited regulatory reviews and macroeconomic factors as reasons.

DYDX, a decentralized exchange, laid off 35% of employees two weeks after the return of CEO Antonio Juliano. The scan involved several core team members.

Kraken last adjusted its personnel structure in 2022 after the decline in the cryptocurrency market. About 30% of the workforce, or about 1,100 employees, were laid off due to the uncertainty caused by Bitcoin’s decline and high-profile bankruptcies like FTX.