Bloomberg reports that crypto exchange Kraken has initiated another round of layoffs, eliminating approximately 150 positions. This adjustment is related to the company’s increased use of AI tools, aiming to reduce costs and improve operational efficiency.
This round of personnel changes adds further uncertainty to Kraken’s plans for a U.S. listing. The report notes that while the company was expected to move forward with an IPO this year, the timeline may now be delayed until 2027 due to a weaker crypto market and declining digital asset prices.
The listing plan may be further delayed
Kraken has been preparing for an IPO over the past several months. Reports indicate that the company secretly filed documents with U.S. regulators at the end of last year, but earlier this year, it paused those plans.
The main reasons stem from changes in the market environment. Since the end of last year, cryptocurrency asset prices have declined, trading activity has decreased, industry revenues have come under pressure, and the first-quarter results of several publicly traded crypto companies have fallen short of expectations.
Kraken co-CEO Arjun Sethi stated last month at a conference that the company still plans to go public in the future, but did not provide a specific timeline.
Industry-wide layoffs are progressing in tandem with AI adoption.
Kraken is not an isolated case. As automation and AI tools accelerate implementation, several crypto companies have reduced their teams this year.
- Since the beginning of this year, the cryptocurrency industry has cumulatively laid off more than 5,000 people.
- Block reportedly laid off approximately 4,000 employees in February.
- Dune recently reduced its workforce by approximately 25%.
The report also mentioned that Coinbase reportedly laid off approximately 700 people this month, for similar reasons related to increased AI usage. Gemini and Crypto.com have also implemented layoffs this year.
A weakening market compresses company revenue.
Behind the industry-wide layoffs lies a weakening market environment. Since the decline in crypto assets at the end of last year, investor sentiment and trading demand have both cooled, putting pressure on platform revenues.
For exchanges, AI is becoming a new cost-reduction tool, but in the short term, market sluggishness remains the primary factor influencing hiring, expansion, and IPO timelines. Kraken’s recent layoffs reflect how crypto companies are shifting their focus toward efficiency and cash flow.