Cryptocurrency exchange Kraken has declared “a new day,” with the appointment of new co-CEO Arjun Sethi and a managerial shakeup. There is also an unconfirmed report that 15% of the staff has been laid off.
Sethi is also the co-founder and chairman of Silicon Valley venture capital investor Tribe Capital and has been a member of the Kraken board since 2021. He will share the top position at Kraken with David Ripley.
Managers in layers and siloes
In addition to disclosing Sethi’s appointment, Kraken announced coming fundamental changes on its blog on Oct. 30. “We need to be leaner and faster,” it said. Apparently, Kraken’s organizational structure is in for an overhaul. According to the blog:
“We fell into the trap of building organizational layers. We put managers in charge of the successes or failures of the groups they controlled, and we predicated success based on siloed P&Ls [profits and losses]. […] So, ‘managers’ are incentivized to do the wrong thing.”
“We are making organizational discipline decisions to tackle this problem and eliminate layers,” the post continued. The ominous tone deepened as the discussion continued to difficult changes and profound impact on people’s lives.
According to an X post by New York Times reporter Mike Isaac, the exchange has also cut 15% of its workforce. Isaac cited two unnamed inside sources.
Related: Kraken to launch Ink blockchain for DeFi in early 2025
A bad week to work in crypto
Kraken last implemented layoffs in November 2022, when it cut 1,100 people, or 30% of its workforce, due to “market conditions.” It provided those affected with severance pay and other benefits. The exchange began hiring again in mid-2024.
Kraken promised support to the people in transition in its Oct. 30 blog.
Source: Mike Isaac
The Kraken announcement comes during a bad week for crypto professionals. One day earlier, blockchain firm Consensys, developer of the MetaMask wallet, announced the layoff of 162 employees, or more than 20% of its workforce, in a restructuring.
That same day, dYdX Trading, which operates the dYdX decentralized cryptocurrency exchange, let 35% of its staff go.
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