Kraken Cuts About 150 Roles as It Doubles Down on AI; U.S. IPO Could Slip to 2027
Kraken has eliminated roughly 150 jobs as it ramps up the use of artificial intelligence, a shift Bloomberg says may push the crypto exchange's long-anticipated U.S. initial public offering out to 2027.
According to Bloomberg, which cited a person familiar with the matter, the reductions stem from operational efficiencies gained as Kraken expands internal AI tools across its corporate entity, Payward. The person said the company does not currently expect another round of layoffs, even as AI adoption spreads across multiple teams.
The move comes as the broader crypto industry trims costs. Softer crypto prices and rising spending on automation have pressured firms to rein in budgets, and publicly traded crypto companies reported weaker first-quarter results after market momentum faded late last year.
Kraken confidentially filed IPO paperwork with U.S. regulators in November, then paused the process in March as market conditions deteriorated. Co-CEO Arjun Sethi later confirmed at an industry conference that the company had made a confidential filing, without providing a listing timeline. Bloomberg's report indicates the latest restructuring could delay a U.S. listing until 2027.
Kraken's cuts also reflect a wider push toward AI-driven efficiency. More than 5,000 crypto-related jobs have reportedly been eliminated so far in 2026, with companies citing automation and organizational reshuffles.
Other recent examples include:
Coinbase: The company said it plans to cut about 14% of its workforce. CEO Brian Armstrong described the move as an effort to become "lean, fast, and AI-native," arguing AI is letting engineers complete work in days that previously took weeks and enabling nontechnical employees to ship production code through automated workflows. Coinbase also plans to remove management layers, cap the organization at five levels below the CEO and COO, and test smaller, AI-focused teams.
Gemini: The exchange said in February it would lay off around 200 employees and wind down operations in the U.K., EU, and Australia, citing growing losses, IPO-related costs, and weaker markets after Bitcoin fell below $70,000.
Dune: The crypto analytics platform cut about 25% of staff as it refocuses on core products.
As exchanges and platforms race to integrate AI while controlling expenses, the sector is navigating a trade-off: capturing long-term efficiency gains from automation without eroding operating capacity or investor confidence, both of which influence future fundraising and IPO plans.
