- Kraken has laid off 15% of its workforce, affecting approximately 400 employees
- A corporate restructuring includes the appointment of Arjun Sethi as co-CEO alongside current chief Dave Ripley
- A Kraken employee told us that the cuts have affected unprofitable areas
Crypto OG exchange Kraken has downsized its workforce by 15%, impacting around 400 employees, and appointed a co-CEO. The company’s restructuring plan, aimed at improving efficiency and competitiveness in the evolving crypto market, also includes naming Arjun Sethi as co-chief executive, joining Dave Ripley, who took over as CEO in 2023 after founder Jesse Powell’s resignation. The leadership team has emphasized a focus on reducing managerial complexity to prioritize innovation over administration.
Restructuring for Competitiveness
Kraken’s decision to trim its workforce comes as part of a larger corporate restructuring initiative designed to increase agility. In a joint statement, Sethi and Ripley outlined their vision to enhance the platform’s competitiveness, stating, “To continue forging our path ahead and put Kraken in contention to become the largest crypto platform in the world, we need to be leaner and faster.” The new leadership structure is intended to tackle organizational inefficiencies, according to the company blog post.
Kraken has faced a challenging two years, including internal cultural issues and external regulatory scrutiny. In 2022, former CEO and founder Jesse Powell sparked controversy by encouraging employees who disagreed with his political views to exit the company, creating tensions within the organization.
Later that year, Powell stepped down following a Treasury Department investigation over alleged U.S. sanctions violations, leading to Kraken’s settlement with the government. The reshuffling of top executives marks Kraken’s ongoing response to both internal and external pressures in an evolving industry landscape.
Ripley is “Just the Face”
The employment of two CEOs may not be the headline-grabbing element of the story, but it is the most intriguing. Running a company with two people at the helm rarely works well (just ask Gerard Houlier and Roy Evans), and a Kraken employee told us that the power share will not be equal, stating, “New co-CEO…has total control, Ripley is just the face now.” Kraken was also planning a IPO, but the source said that this is not unlikely.
The company is also battling a lawsuit from the U.S. Securities and Exchange Commission over the alleged unregistered sale of securities, although the likelihood is that Kraken will settle this case. With its newly appointed leadership and streamlined operations, Kraken aims to move past these upheavals, focusing on growth and innovation while navigating the challenges inherent to the cryptocurrency market.
