Kraken Eyes Wall Street Debut but Workers Pay the Price in Ongoing Layoffs

Key Takeaways

• Kraken has laid off hundreds of employees as it prepares for an IPO.
• Streamlining operations before going public is becoming common among crypto firms.
• A shift in U.S. political leadership has boosted optimism for crypto companies eyeing Wall Street.

Kraken is the latest crypto firm to join the IPO queue—but not without some major internal shakeups first..

As part of its preparation for a public listing, the global exchange has laid off hundreds of employees across multiple departments.

Kraken Trims Workforce Ahead of IPO Plans

According to Reuters , the layoffs are part of a broader effort to streamline operations and improve Kraken’s earnings before interest, taxes, and amortization (EBITA). This process reportedly began with the appointment of new CEO Arjun Sethi and has continued in the months since.

“They’re culling aggressively across all functions, and it’s a constant and ongoing thing,” a source familiar with the matter told Reuters.

This isn’t the first round of job cuts. In October 2024, Kraken slashed roughly 15% of its workforce—about 400 roles. Since then, the layoffs have continued as the company positions itself for its Wall Street debut.

But Kraken isn’t alone.

Crypto Firms Are Leaning Out Before Going Public

Several crypto companies appear to be following a similar strategy: cut costs, clean up their operations, and prepare for the public markets.

Circle, the company behind the USDC stablecoin, has already filed to go public.

Gemini, the exchange founded by the Winklevoss twins, also has IPO ambitions.

Meanwhile, Ripple—the firm behind XRP—has been widely speculated to be next, especially after the long-running Securities and Exchange Commission (SEC) lawsuit against it was recently dismissed.

For many of these companies, the timing isn’t just about market cycles—it’s also about politics.

New Administration, New Outlook

The shift in U.S. leadership has had a noticeable impact on sentiment in the crypto space. Following Donald Trump’s return to office, many companies that were previously cautious about operating in the U.S. are now eyeing growth and public listings.

Trump’s administration has pushed for clearer crypto regulations and scaled back several enforcement actions brought under the previous government.

The SEC has dropped multiple lawsuits and investigations, and the Department of Justice recently dissolved its crypto task force, criticizing what it described as regulatory overreach in past years.

For firms like Kraken, this change in tone may be the green light they’ve been waiting for.

Whether 2025 becomes the year of crypto IPOs remains to be seen.

However, if recent moves are any indication, Wall Street may soon be welcoming more blockchain-native companies to the big leagues.