As an analyst with over two decades of experience in the tech industry, I’ve seen my fair share of organizational changes, and Kraken’s recent announcement seems to be another chapter in this ongoing narrative. The appointment of Arjun Sethi as co-CEO, along with the reported restructuring and potential layoffs, is a bold move that, if executed well, could prove beneficial for the exchange.
Kraken, a leading cryptocurrency exchange, has ushered in a fresh chapter as they’ve named Arjun Sethi as their new co-CEO and restructured their management team. It’s been rumored, though not yet confirmed, that there may be job reductions affecting approximately 15% of the workforce.
Sethi serves as both co-founder and chairperson for venture capital firm Tribe Capital in Silicon Valley, and he joined the Kraken board in 2021. Starting now, he will be sharing leadership responsibilities at Kraken alongside David Ripley.
Managers in layers and siloes
On October 30th, along with revealing Sethi’s appointment, Kraken also unveiled significant changes in their operations on their blog, stating, “We must become more agile and efficient.” It appears that Kraken is planning to restructure its organizational setup. As per the blog post:
“We fell into the trap of building organizational layers. We put managers in charge of the successes or failures of the groups they controlled, and we predicated success based on siloed P&Ls [profits and losses]. […] So, ‘managers’ are incentivized to do the wrong thing.”
The post mentioned that we’re taking steps to address this issue by streamlining our organizational structure, removing unnecessary levels, which can be challenging given the significant changes it may bring and the potential impact on individuals.
As reported by Mike Isaac, a staff member at The New York Times, the company made a reduction in its workforce by approximately 15%. This information was sourced from two anonymous insiders within the company.
A bad week to work in crypto
Kraken performed a round of layoffs back in November 2022, dismissing approximately 1,100 employees which equated to about 30% of their workforce. This decision was made as a response to unfavorable market conditions. Affected employees were offered severance packages and additional benefits. The company resumed hiring efforts in the middle of 2024.
Kraken promised support to the people in transition in its Oct. 30 blog.
This week has been challenging for cryptocurrency professionals, as troubling news unfolds. Yesterday, the blockchain company Consensys – known for creating the MetaMask wallet – announced job cuts affecting 162 employees, which is over 20% of their workforce, in a restructuring move. The Kraken announcement followed suit on this difficult week.
On that particular day, dYdX Trading, the company behind the dYdX decentralized crypto exchange, carried out a reduction in their workforce by dismissing approximately one-third of their employees.
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2024-10-30 23:09