The cryptocurrency exchange Kraken may postpone its planned US IPO until next year if reports of layoffs are to be believed, as a cost-cutting measure.
Approximately 150 employees were let go by the exchange on Friday, according to Bloomberg, which cited an anonymous source, as a result of cost savings achieved by using AI company-wide. According to the source, Kraken is making more use of AI, but at this time, the firm has no plans to lay off any more employees.
More than 5,000 people have lost their employment at crypto-related firms this year, with many pointing to the rise of AI as the cause for the downsizing. With an AI-driven reduction of 4,000 employees in February, Block Inc. conducted the largest wave of layoffs by a cryptocurrency business so far in 2026. This amounted to about half of the company’s workforce.
Kraken Pushes IPO Timeline
Public crypto firms’ financial sheets have been hit hard by the decrease in crypto values since late last year. Many of these companies reported losses in their first-quarter results. According to reports, Kraken’s downsizing has delayed its goal to go public this year. The business is now targeting a US debut in 2027.
The intention to go public has been in the works for a while now by Kraken. After confidentially filing with US authorities in November, the business decided to halt its initial public offering (IPO) in March as a result of the falling cryptocurrency market.
Dune, a crypto data provider, also announced layoffs of 25% of its employees this week, citing a need to reorganize and concentrate on core offerings as the reason. Kraken’s layoffs follow in the same vein.