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An American cryptocurrency exchange announced that it will streamline its operations and make changes in its organizational structure as it aims to become the world’s largest crypto platform. As part of the changes, the Kraken crypto exchange will downsize its workforce by at least 15%.
More Focus On Innovation
In a statement, Kraken stated that the goal of the corporate restructuring is to make innovation the cornerstone of their operations.
The crypto platform will shift its attention to product engineering, saying that it plans to make teams involved in engineering, product, and design teams “more accountable for results”.
According to the exchange, it aims to leverage data in making decisions that will benefit its clients.
The company also plans to align its high productivity with client needs, which the crypto firm sees as significant for its success.
Kraken, one of the world’s largest cryptocurrency exchanges, on Wednesday announced the layoff of 15 percent of its workers, a corporate restructuring and the appointment of a new co-chief executive. The cuts amounted to about 400 of the company’s roughly 2,600 employees. They…
— Wu Blockchain (@WuBlockchain) October 30, 2024
Further, Kraken will reinvent itself by turning into a leaner organization by abolishing administrative layers and shifting its manpower to technical and product-focused teams, a move that will make the crypto exchange more efficient while maintaining its innovative quality.
Downsizing Manpower
Kraken stated in a blog post that the company will reduce its workforce by letting go 15% of its 2,600 employees, a move associated with its corporate reorganization, saying that it is part of its “organizational discipline decisions” to reduce redundancies.
Around 400 workers will be furloughed by the company. Among these are two individuals in leadership roles, chief operating officer Gilles BianRosa and chief technology officer Vishnu Patankar.
The company disclosed organizational changes are never easy, saying that the crypto firm understood its “profound impact on people’s lives”.
“We deeply appreciate those who helped us get here and for their many contributions, and we will support them during this transition,” the company said in a statement.
Appointing Another CEO
Kraken disclosed that it brought in a new executive who will serve as co-CEO of existing CEO Dave Ripley who assumed the role in 2023 after Kraken’s founder Jesse Powell left the company due to internal disputes with the employees.
In the company’s blog, Kraken welcomed Arjun Sethi as the new co-chief executive who is seen providing a fresh vision to the crypto firm. Sethi is also known as the Co-Founder and Chairman of Tribe Capital and was a former executive for Yahoo.
Ripley said that he and Sethi have already worked closely with each other for many years, expressing confidence in what Sethi can bring to the table. “I’m excited to team up with him as we chart Kraken’s next phase of growth,” he added.
Kraken Layoff: Wise Move Or Not?
Is Kraken’s reorganizing a calculated risk in a volatile market or a smart action meant for expansion? Cutting its staff and focusing on innovation will help Kraken increase efficiency and drive expansion. Could this leaner strategy backfire in the very competitive crypto space, or will it help Kraken ahead?
Featured image from Dall-E, chart from TradingView
