Kraken Layoffs: Strategic Restructuring Before IPO & Traditional Finance Push
Cryptocurrency exchange Kraken has started laying off workers as part of a larger restructuring plan to tie its staff more closely to long-term strategic initiatives, such as expanding into mainstream finance and exploring an IPO. Though the total number of layoffs is not specified, the layoffs come after Kraken reduced staff by 15% in 2022 when the crypto markets fell.
Why the Layoffs?
A Kraken spokesperson explained that the layoffs are not just a cost-cutting exercise but a strategic reorientation to focus on productivity and future growth areas. Departments are being consolidated or redesigned, with continuing hiring in areas essential to Kraken's new roadmap. The company highlighted its efforts to establish a "multi-asset financial platform" beyond crypto, such as recent forays into commission-free stock/ETF trading and forex markets.
SEC Lawsuit Dismissal: A Turning Point
In March 2025, the U.S. Securities and Exchange Commission (SEC) dismissed its case against Kraken for operating as an unregistered securities exchange. Kraken had described the case as "politically motivated," and its dismissal removed one of the biggest regulatory overhangs, enabling the exchange to grow more aggressively.
Expansion Beyond Crypto
Kraken's diversification plan features:
- Acquisition of NinjaTrader, a trading technology company.
- Introduction of traditional financial services (stocks, ETFs, forex).
- Preparing for a possible IPO to cement its status as a multi-asset platform.
Previous Layoffs & Market Environment
In 2022, Kraken laid off 400 employees (15% of its staff) under crypto winter pressures. The existing restructuring, however, is representative of proactive changes instead of reactive cost containment.
Also Read: Dogecoin Whales Dump 570M Tokens, Price Faces Strong Downtrend
What's Next?
Kraken hopes to level crypto innovation and traditional finance ties, counting on regulatory clarity and market recovery. Although layoffs confirm short-term bumps, its plans for an IPO and broader product offerings may rescript its presence in global finance.
