A massive crypto company has now laid off 400 employees, or about 15% of the exchanges 2,600 staff amidst a new change in leadership.
Crypto exchange Kraken has announced layoffs as part of its strategy to create a “leaner and faster” organization.
The company has appointed long-time board member Arjun Sethi as co-CEO and blockchain expert Stephanie Lemmerman as CFO.
The announcements were made on Thursday, though specific details about the layoffs were not provided.
Reports indicate that approximately 15% of Kraken’s workforce, around 400 out of 2,600 employees, have been let go, including former operations chief Gilles BianRosa and technology chief Vishnu Patankar.
In a blog post, co-CEOs Dave Ripley and Sethi noted that as the company grew and surpassed $1 billion in net revenue while operating remotely, it had become burdened by excessive organizational layers.
They emphasized the need for more organizational discipline to address this issue.
While no details on severance were shared, the leadership stated that they would support those affected during the transition.
They expressed a desire to empower top contributors to focus on building products rather than managing teams, aiming to enhance accountability among engineering, product, and design teams.
A company spokesperson declined to provide further comments.
These layoffs follow a similar move by another crypto firm, Consensys, which recently reduced its workforce by 20%. Consensys CEO Joseph Lubin attributed the cuts to challenging macroeconomic conditions and regulatory uncertainties.
Kraken is not alone in this trend; several other crypto firms, including Paxos and MoonPay, have also laid off staff this year, reflecting broader challenges in the fintech sector.
Sethi, now co-CEO, is recognized for his effectiveness, as noted by Kraken co-founder and board chair Jesse Powell. Sethi is a co-founder and partner at Tribe Capital and has previously held an executive role at Yahoo!.
Powell highlighted Sethi’s contributions during his time on the board, noting his ability to navigate difficult situations.
The appointment of Lemmerman as CFO is seen as a strategic move toward Kraken’s long-term goal of going public, with Ripley commenting on her strong financial leadership and expertise being vital for future plans.
Lemmerman replaces Carrie Dolan, who has announced her departure but will assist during the transition.
In addition to the leadership changes, Kraken launched a new desktop trading app designed for active traders, offering features that enable users to respond swiftly to market movements.
Clark Moody, senior engineering manager for Kraken Desktop, stated that the app aims to provide active traders with the tools necessary to enhance their trading experiences and engagement in the crypto market.
The launch of the desktop app follows the announcement of Kraken’s upcoming blockchain, Ink, set to debut for customers early next year.
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