Payward, the parent company of cryptocurrency exchange Kraken, announced the layoff of approximately 150 employees, representing 5% of its global workforce of around 3,000. The decision, reported by CoinDesk and confirmed by Crypto Economy, is part of a financial optimization strategy led by co-CEOs David Ripley and Arjun Sethi, aimed at improving profit margins ahead of an expected initial public offering (IPO) in the United States.
Kraken filed a confidential S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) in November 2024, signaling its ambition to become one of the first major U.S. crypto exchanges to go public. While the company temporarily paused its listing timeline in March 2026 due to market conditions, the S-1 remains active, and Payward is targeting a valuation of $20 billion. The layoffs continue a restructuring that began in late 2024, a common practice among crypto firms seeking to present stronger profitability metrics to institutional investors.
Despite the workforce reduction in mature areas, Payward is still hiring in high-growth sectors such as derivatives and tokenized assets, indicating a strategic reallocation rather than a broad pullback. The success of upcoming IPOs in the crypto space will be decisive for Kraken to reactivate its Wall Street debut later this year. Analysts view the moves as a sign that the company is preparing for the cost discipline and scrutiny required of a public entity.
