A US cryptocurrency exchange has announced that it will streamline its operations and make changes to its organizational structure in a bid to become the world’s largest cryptocurrency platform. As part of these changes, crypto exchange Kraken will reduce its workforce by at least 15%.
More emphasis on innovation
In a statement, Kraken said the goal of the company’s restructuring is to make innovation the cornerstone of its operations.
The crypto platform will shift its focus to product engineering, saying it plans to make teams involved in 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 crypto company considers important to its success.
Kraken, one of the world’s largest cryptocurrency exchanges, announced on Wednesday the layoff of 15% of its employees, a restructuring of the company and the appointment of a new co-chief executive officer. The job cuts affected about 400 of the company’s approximately 2,600 employees. They…
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Additionally, Kraken will reinvent itself by transforming itself into a leaner organization by abolishing administrative layers and shifting its workforce to technical and product-focused teams, a move that will make the crypto exchange more efficient while maintaining its innovative quality .
Downsizing
Kraken said in a blog post that the company would reduce its workforce by laying off 15% of its 2,600 employees, a move associated with its corporate reorganization, saying it was part of its “organizational discipline decisions” aimed at reduce layoffs.
Around 400 workers will be made redundant by the company. These include two people in leadership positions, Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar.
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The company revealed that organizational changes are never easy, saying the crypto firm understands its “profound impact on people’s lives.”
“We deeply appreciate those who have helped us get to this point and for their many contributions, and we will support them during this transition,” the company said in a statement.
Appoint another CEO
Kraken revealed that it has recruited a new executive who will serve as co-CEO from current CEO Dave Ripley, who assumed the role in 2023 after Kraken founder Jesse Powell left the company due to internal conflicts with employees.
On the company blog, Kraken welcomed Arjun Sethi as its new co-CEO, who appears to bring a new vision to the crypto company. Sethi is also known as the co-founder and chairman of Tribe Capital and was a former Yahoo executive.
Ripley said he and Sethi have already worked closely together for many years, expressing confidence in what Sethi can bring. “I’m excited to team up with him as we plan the next phase of Kraken’s growth,” he added.
Dismissal of the Kraken: wise decision or not?
Is Kraken’s reorganization a calculated risk in a volatile market or a smart move aimed at expansion? Reducing headcount and focusing on innovation will help Kraken increase efficiency and drive expansion. Could this simpler strategy backfire in the highly competitive crypto space, or will it help Kraken move forward?
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