Kraken parent Payward cuts 150 staff, streamlining business ahead of planned IPO
Cryptocurrency exchange Kraken's parent company Payward has laid off approximately 150 employees as part of a strategic restructuring initiative ahead of its planned initial public offering. The workforce reduction represents roughly 15% of the company's total staff and affects multiple departments across the organization, according to sources familiar with the matter.
The layoffs come as Kraken prepares for a potential public listing that has been under consideration for several years. The San Francisco-based company, founded in 2011, has been working to streamline operations and improve profitability metrics that would be attractive to public market investors. Payward previously raised capital at a $10.8 billion valuation in 2022, making it one of the most valuable private crypto exchanges globally.
The move reflects broader cost-cutting trends across the cryptocurrency industry as companies face pressure to demonstrate sustainable business models amid regulatory uncertainty and market volatility. Several major crypto firms have implemented similar workforce reductions in recent months as they prioritize operational efficiency over rapid expansion.
Industry observers will be monitoring whether Kraken's restructuring efforts translate into improved financial performance and whether the company will proceed with IPO plans in the current market environment. The exchange continues to compete with publicly-traded rival Coinbase and other major platforms for market share in the evolving digital asset trading space.
Source: CoinDesk
