A US cryptocurrency exchange has announced that it will streamline its operations and make changes to its organizational structure as it aims to become the largest cryptocurrency platform in the world. As part of the changes, cryptocurrency exchange Kraken will be added Reducing the size of its workforce By no less than 15%.
More focus on innovation
In a statement, Kraken He stated that the goal of restructuring the company is to make innovation the cornerstone of its operations.
The cryptocurrency platform will shift its attention to product engineering, saying it plans to make the teams involved in the engineering, product and design teams “more accountable for results.”
According to the exchange, it aims to leverage data to make decisions that will benefit its clients.
The company also plans to align its high productivity with customer needs, which the cryptocurrency company considers important to its success.
Kraken, one of the world’s largest cryptocurrency exchanges, announced Wednesday the layoff of 15 percent of its workers, a company restructuring and the appointment of a new co-CEO. The cuts amounted to about 400 of the company’s approximately 2,600 employees. they…
— Wu Blockchain (@WuBlockchain) October 30, 2024
Furthermore, Kraken will reinvent itself by becoming a leaner organization by eliminating administrative layers and transforming its workforce into product-focused technical teams, a move that will make the cryptocurrency exchange more efficient while maintaining its innovative quality.
Reducing the workforce
Kraken said in a blog post that the company will reduce its workforce by laying off 15% of its 2,600 employees, a move tied to the company’s reorganization, saying it is part of “organizational discipline decisions” to limit layoffs.
The company will furlough about 400 workers. These include two people in leadership roles, Chief Operating Officer Gil Pianrosa and Chief Technology Officer Vishnu Patankar.
BTCUSD trading at $70,181 on the daily chart: TradingView.com
The company revealed that regulatory changes are never easy, saying that the cryptocurrency company understands 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 period,” the company said in a statement.
Appointment of another CEO
Kraken revealed that it has appointed a new CEO who will serve as co-CEO to current CEO Dave Ripley, who took over the position in 2023 after Kraken founder Jesse Powell left the company due to internal disagreements with employees.
In the company blog, Kraken welcomed Arjun Sethi as the new co-CEO who is seen as bringing a new vision to the cryptocurrency company. Sethi is also known as the co-founder and chairman of Tribe Capital and was a former CEO of Yahoo.
Ripley said 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 collaborate with him as we chart the next phase of Kraken’s growth,” he added.
Layoffs at Kraken: A Wise Move or Not?
Is Kraken’s reorganization a calculated risk in a volatile market or a smart move aimed at expansion? Reducing its headcount and focusing on innovation will help Kraken increase efficiency and drive expansion. Could this leaner strategy backfire in the highly competitive cryptocurrency space, or will it help Kraken in the future?
Featured image by Dall-E, chart from TradingView