(Bloomberg) -- The US-based cryptocurrency exchange Kraken is laying off workers as part of organizational changes following the appointment of a new co-chief executive, according to a spokesperson for the company.
The spokesperson would not comment on how many employees are affected, or the titles of those who were laid off. The cuts amounted to 15% of the company’s workers, or about 400 jobs, the New York Times reported, citing people familiar with the matter.
The job cuts come as Arjun Sethi, co-founder of venture firm Tribe Capital, takes over as co-CEO of the company alongside Dave Ripley.
Kraken said it is making “organizational discipline decisions” to eliminate management layers that developed over the years as the company’s net revenue grew above $1 billion, according to a blog post on Wednesday. Kraken was founded in San Francisco in 2011 and has been expanding into new product areas and markets as it continues to mull a potential initial public offering. Earlier this year, Bloomberg reported the firm was considering a final funding round ahead of an IPO.
“Making organizational changes is never easy, and we understand their profound impact on people’s lives,” the blog post said.
The layoffs are the latest in a flurry of job cuts in the crypto industry. Consensys, a software provider for the Ethereum network being sued by the Securities and Exchange Commission, on Tuesday blamed regulatory uncertainty in part for its decision to eliminate 162 positions, or 20% of its workforce. Separately, DYdX Trading Inc., the developer of the namesake decentralized finance exchange, announced that it fired 35% of its employees.
Like many crypto companies, Kraken’s future may hinge on whether US policies surrounding digital assets are modified after the upcoming US elections. Last year, the SEC alleged Kraken operated as an unregistered broker, dealer, exchange and clearing agency. In February 2023, Kraken settled separate charges with the SEC over its staking business.
(Adds NYT report of 400 jobs cuts in second paragraph)
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