Kraken Cuts 150 Jobs Amid AI Push, Delays IPO to 2027

Cryptocurrency exchange Kraken has laid off 150 employees, marking its third round of staff reductions since late 2022. According to a Bloomberg report on May 15, the job cuts stem from increased efficiency achieved through artificial intelligence integration. The move has reportedly delayed Kraken’s anticipated IPO until 2027.

Kraken, operated by parent company Payward Inc., has been navigating a challenging crypto market while preparing for a public listing. The company initially aimed to go public in 2023 but paused those plans due to market declines. This latest delay underscores ongoing headwinds as Kraken adjusts its operations and cost structure to align with market realities.

AI adoption has become a common justification for workforce reductions across the crypto space this year. Kraken’s cuts follow similar moves by other major players. Block Inc., for example, slashed 4,000 jobs—half its workforce—in February. Coinbase reduced its headcount by 700 employees earlier this month, citing both market conditions and AI efficiencies. Rival exchanges Gemini and Crypto.com also laid off 200 and 180 employees, respectively, over the past year under similar rationales.

The broader crypto sector has shed over 5,000 jobs in 2026 to date, reflecting a combination of declining asset prices, subdued trading volumes, and operational overhauls. Kraken itself previously laid off 30% of its workforce (approximately 1,100 employees) in November 2022 and another 400 employees in October 2024. Despite these measures, the company maintains a private valuation of $13.3 billion, bolstered by recent expansions such as its $600 million acquisition of Reap Technologies in May 2026 to strengthen its Asian presence.

Kraken’s ongoing restructuring coincides with its strategic pivot toward AI and other cost-saving technologies. While co-CEO Arjun Sethi reaffirmed Kraken’s IPO ambitions at a recent conference, he did not provide a specific timeline. Sources suggest the company is now targeting a U.S. public debut in 2027, a significant delay from earlier projections.

Kraken’s restructuring also reflects a broader trend of consolidation and recalibration within the crypto industry. Market pressures, regulatory scrutiny, and technological advancements have forced companies to adapt to a rapidly changing environment. Kraken, for example, has faced its share of hurdles, including a $362,159 settlement with U.S. regulators in 2022 for sanctions violations and a 2025 security incident that exposed customer data.

Despite these challenges, Kraken remains focused on growth. In addition to its Asian expansion, the company partnered with Deutsche Börse in April 2026, securing a $200 million investment. This underscores Kraken’s dual strategy of pursuing long-term opportunities while streamlining operations in the short term.

As the crypto market continues to evolve, Kraken’s journey highlights the delicate balance between innovation, cost management, and strategic timing. Investors and market participants will now watch closely to see how these moves impact the company’s eventual IPO prospects in 2027.

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