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- Kraken is trimming its workforce as part of IPO readiness.
- Layoffs exceed the initial 15% cut from last October.
- The focus remains on stronger financial performance and strategic growth.
Kraken, one of the leading cryptocurrency exchanges, has initiated a series of workforce reductions in recent months. These cuts are part of a broader effort to prepare for an initial public offering in the United States.
The company made its initial cuts last October, letting go of 400 workers, or 15% of its staff. But the cuts did not stop there. The cuts have continued from there. Sources said several hundred other employees have lost their jobs in batches.
These cuts stretch across multiple departments, affecting virtually everything the company does. The leadership is attempting to reduce organizational complexity as well as improve profitability metrics, such as EBITDA.
Kraken’s Quiet Layoffs and Bold Growth Moves
The goal is for the company to be leaner and more agile as it adjusts to regulation as well as market pressures as it transitions into being a public company. Company leadership changed during 2023, as David Ripley shared the role of co-CEO with the arrival of Arjun Sethi. In the new structure, Kraken emphasized the need for removing extra layers of administration as well as making processes less complicated.
The firm is not releasing a volume of recent dismissals, though internal sources outline them as ongoing. It would appear that Kraken is employing a rolling model of employee evaluation. Roles are being cut where duplication exists, and departments are being consolidated or redistributed.
In the meantime, Kraken continues its hiring for jobs deemed essential for its growth strategy. The exchange has made strides toward building out its product suite, such as the acquisition of derivatives trading platform NinjaTrader. It further announced listed stock trading, signaling a diversification beyond crypto.
Discipline Meets Ambition in Kraken’s IPO Strategy
The dual-track strategy of cost-cutting, along with investments made for new products, mirrors the broader strategy of Kraken for becoming market leader. The firm is poised for IPO with lean operations, steady revenues, and a history of growth.
IPO strategies by Kraken align with numerous crypto companies eyeing floats. For Kraken, getting it right is finding balance between growth and discipline. Redesign of organizations is prompting a framework suitable for regulators as well as public shareholders.
These strategic actions evidence an unwavering commitment to long-term sustainability. While the reductions have touched many, Kraken leadership is focused not only on becoming a profitable company but also on becoming one well-suited for the public scrutiny that attends being a public company.
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