Kraken Cuts Workforce Amid Strategic Shift to Traditional Finance

Kraken, a prominent crypto exchange, has recently laid off hundreds of employees in various departments of the firm. This move is part of its efforts to ensure the workforce aligns with its strategic priorities.

Notably, this layoff follows a previous 15% workforce reduction in 2024, which affected approximately 400 employees. Then, the exchange appointed Arjun Sethi as a co-CEO.

Kraken Slashes Headcount

The American crypto exchange highlighted that the job cuts affected redundancy positions while it continues to hire in key areas, indicating a focus on growth in specific sectors. By implementing this measure, Kraken aims to reduce costs and improve earnings before interest, taxes, depreciation, and amortization (EBITDA). Moreover, this strategy seeks to streamline its operations ahead of a potential U.S. public listing.

“We continuously evaluate our workforce to ensure it aligns with our strategic priorities. Kraken’s business is thriving. 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, announced earlier this year,” the exchange said.

Kraken’s strategic moves come in the wake of favourable regulatory developments. In March 2025, the U.S. Securities and Exchange Commission dismissed a civil lawsuit against Kraken, which had accused the company of operating as an unregistered securities exchange. The firm viewed this dismissal as a significant victory, removing a major regulatory hurdle and allowing it to focus more on innovation and expansion.

Strategic Shift to Traditional Finance

Since this year, Kraken has been expanding actively beyond its core cryptocurrency services into traditional financial markets. In March 2025, Kraken announced a $1.5 billion acquisition deal for NinjaTrader, a retail futures trading platform. This acquisition is intended to broaden the exchange’s financial services and attract a broader user base.

Furthermore, the company has initiated a phased rollout of commission-free trading for over 11,000 U.S.-listed stocks and exchange-traded funds (ETFs). Users in states including New Jersey, Connecticut, Wyoming, and Oklahoma will be able to trade these products starting Monday.

Like Kraken, other crypto companies are also exploring expansion into traditional financial sectors. Interestingly, the friendlier regulatory landscape set by the country’s president, Donald Trump, has encouraged these moves.