Kraken, the sixth-largest cryptocurrency exchange, announced layoffs and major leadership changes, appointing Arjun Sethi as co-CEO.
Streamlining Operations at Kraken
According to the company, the layoffs are part of a broader strategy to streamline operations and eliminate 'organizational layers' that had slowed decision-making. While the exact number of affected employees has not been disclosed, New York Times journalist Mike Isaac reported that the cuts amount to about 15% of the workforce. This represents the second round of layoffs in a year, following the 30% staff reduction in November 2022.
Arjun Sethi's Appointment
Arjun Sethi, an investor and co-founder of Tribe Capital, has been appointed as co-CEO. Sethi has extensive experience, having held executive positions at companies such as Yahoo and co-founding the crypto derivatives platform Nibiru. Jesse Powell, Kraken's co-founder, emphasized that Sethi is someone who 'gets things done’ and can help the company respond quickly to new challenges.
Layoffs Amid Bull Market Growth
Kraken's layoffs reflect a trend in the crypto industry, where companies like ConsenSys and dYdX have also reduced staff despite rising Bitcoin prices. These changes are largely driven by regulatory challenges and a desire for efficient operations. For example, ConsenSys reduced its staff partly due to regulatory uncertainties, while Kraken faces challenges related to legal disputes with the SEC.
Despite its downsizing, Kraken continues to develop new products, including the launch of the new blockchain platform Ink. With this approach, the company aims to position itself among the largest crypto platforms globally.
