Kraken Slashes 150 Roles While Ramping Up AI Efficiency Measures

bitcoinistPublished on 2026-05-19Last updated on 2026-05-19

Abstract

Cryptocurrency exchange Kraken has laid off approximately 150 employees as part of efforts to increase operational efficiency through the adoption of artificial intelligence. This move has reportedly pushed back the company's planned U.S. initial public offering (IPO) timeline to at least 2027. Kraken had confidentially filed for an IPO in late 2025 but placed plans on hold earlier this year amid declining crypto market conditions. The layoffs, driven by AI integration, reflect a broader trend in the crypto industry, where firms including Coinbase, Gemini, Crypto.com, and Block have collectively cut thousands of jobs in 2026. A weaker market and reported quarterly losses have added to the sector's pressures. Kraken has not publicly commented on the job cuts or the revised IPO schedule.

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Kraken’s plan to go public in the US may have to wait until 2027. The crypto exchange, formally known as Payward, laid off about 150 workers last week, a move that has pushed back its initial public offering timeline by at least a year, Bloomberg reported, citing a person familiar with the matter.

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A Year Of Shifting Plans

The company had been quietly working toward a public listing for months. Kraken filed confidentially with US regulators late last year, then put those plans on hold in March as crypto prices fell.

Co-CEO Arjun Sethi acknowledged the filing at a recent conference but stopped short of giving any dates. Now, according to reports, the IPO is unlikely before 2027.

The layoffs were driven by the company’s growing use of artificial intelligence across its operations. The source told Bloomberg that AI is being used more broadly throughout the business, though no further job cuts are currently planned.

Crypto Sector Feels The Pressure

Kraken is far from alone. Crypto companies have shed more than 5,000 jobs so far this year, with AI adoption cited repeatedly as a key driver. Coinbase cut 700 employees, about 14% of its workforce, on May 5.

Rival exchanges Gemini and Crypto.com let go of about 200 and 180 staff, respectively, earlier in the year. Block Inc. made the steepest cut of all, eliminating around 4,000 positions in February, roughly half its total headcount.

BTCUSD trading at $76,384 on the 24-hour chart: TradingView

Crypto data firm Dune also announced layoffs this week, trimming a quarter of its staff as it refocused on core products.

A weaker market has added to the strain. Prices have been sliding since late 2025, and several publicly traded crypto firms reported losses in their first-quarter earnings.

Related Reading: CLARITY Act Could Unlock Wider Tech Growth In America, Says a16z

What Comes Next For Kraken

The company has not publicly confirmed the layoffs or the revised IPO timeline. Reporters reached out to Kraken and did not receive a response before publication.

For now, Kraken appears to be tightening its operations while it waits for better conditions. Whether the market recovers fast enough to make 2027 a realistic window for a public debut remains to be seen.

The exchange is one of the largest in the US, and its listing has been closely watched across the industry.

Featured image from DL News, chart from TradingView

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Christian Encila

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Christian, a journalist and editor with leadership roles in Philippine and Canadian media, is fueled by his love for writing and cryptocurrency. Off-screen, he's a cook and cinephile who's constantly intrigued by the size of the universe.

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Related Questions

QAccording to the article, why did Kraken lay off approximately 150 employees and how is this related to its IPO plans?

AThe layoffs were driven by Kraken's growing use of artificial intelligence across its operations to improve efficiency. According to Bloomberg, citing a source, this move has pushed back the company's initial public offering timeline in the US by at least a year, making an IPO unlikely before 2027.

QWhich other major crypto companies are mentioned in the article as having conducted significant layoffs in 2026, and what was a common reason cited?

AThe article mentions that Coinbase cut 700 employees (about 14% of its workforce), Gemini let go of about 200 staff, Crypto.com laid off about 180 staff, and Block Inc. eliminated around 4,000 positions. A key driver cited for these job cuts across the crypto sector is the adoption of Artificial Intelligence (AI).

QWhat was the stated reason for crypto data firm Dune's layoffs announced the same week as the article?

ADune announced layoffs, trimming a quarter of its staff, as part of a refocus on its core products.

QWhat market condition, besides AI adoption, is adding strain to crypto companies according to the article?

AA weaker cryptocurrency market is adding to the strain. Prices have been sliding since late 2025, and several publicly traded crypto firms reported losses in their first-quarter earnings.

QHow did Kraken's co-CEO, Arjun Sethi, previously acknowledge the company's IPO plans, and has the company officially confirmed the reported timeline delay?

ACo-CEO Arjun Sethi acknowledged at a recent conference that Kraken had confidentially filed with US regulators but did not provide any specific dates. The company has not publicly confirmed the reported layoffs or the revised IPO timeline, and did not respond to requests for comment before the article's publication.

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