One of the popular and giant names in the cryptocurrency exchange industry, Kraken is strategically reorganizing its team to concentrate on new growth prospects, such as delving more into traditional finance via IPO.
A Kraken representative said on Thursday that while the firm is reducing some jobs and reorganizing teams to increase productivity, it is still dedicated to hiring talent in critical fields that complement its long-term objectives.
The representative said, like any successful business, “We continuously evaluate our workforce to ensure it aligns with our strategic priorities.”
This restructuring comes after Kraken reduced its headcount by 15%, or about 400 employees, in 2022. The business is nonetheless hopeful about its growth trajectory in spite of the layoffs.
The U.S. Securities and Exchange Commission’s March withdrawal of a civil action accusing Kraken of functioning as an unregistered securities exchange is largely responsible for this optimism. Calling the SEC’s action politically motivated and harmful to innovation, Kraken feels as if a burden has been lifted now that the case is over. Additionally, the exchange views the court ruling as a watershed that may pave the way for additional investment and expansion in the cryptocurrency market.
“Kraken’s business is thriving,” the representative emphasized. “We’re launching more new products than ever before, driving strong revenue growth, and rapidly expanding across our entire product portfolio — including through the agreement to acquire NinjaTrader.”
This move is consistent with Kraken’s larger diversification plan. As part of its push into more conversational financial markets, the exchange only this month introduced commission-free trading for more than 11,000 equities and exchange-traded funds (ETFs) listed in the United States.
Additionally, Kraken’s entry into these markets coincides with some regulatory changes in the cryptocurrency sector brought about by the current U.S. administration. Many cryptocurrency companies, including Kraken, are looking for new sources of income outside of digital currencies due to the promise of more lenient laws, especially from the administration of U.S. President Trump.
The exact number of layoffs is unknown, but sources say it could be in the hundreds. Notwithstanding the layoffs, Kraken is committed to its primary goals of fostering innovation, expanding its line of products, and establishing itself as a major force in the traditional and cryptocurrency financial markets.
Also read: Kraken Exchange is Looking to Raise $1B Ahead of Potential IPO
