Payward, the parent company of crypto exchange Kraken, is reportedly cutting about 150 jobs as it streamlines the business ahead of a planned public listing.
CoinDesk reported on Friday, May 15, citing two people with knowledge of the matter, that the cuts are part of an optimization effort before the company's IPO. Kraken has about 3,000 employees, meaning the layoffs affect roughly 5% of its workforce.
The cuts come while Payward is still trying to position itself for the public market. Payward confidentially filed a draft S-1 registration statement with the U.S. Securities and Exchange Commission on Nov. 19, a first formal step toward a possible IPO.
But the listing isn't immediate. In March, Payward paused IPO plans because market conditions had weakened. At Consensus Miami, Payward and Kraken co-CEO Arjun Sethi said the exchange is "80% ready" to go public.
Kraken trims before IPO push
The staff cuts land alongside a broader funding and acquisition push. Payward is seeking fresh capital at a $20 billion valuation, while building out more businesses beyond spot crypto trading.
But the timing is difficult. Several crypto companies have delayed listings this year as market appetite cooled.
Consensys, the Ethereum software firm behind MetaMask, has reportedly delayed its potential U.S. IPO until fall at the earliest, while Ledger, the French crypto wallet maker, has also paused its U.S. listing plans because of market conditions.
Dune, a crypto data platform used for on-chain analytics, also cut 25% of its team this week while saying it would focus harder on AI and institutions coming on-chain. Coinbase recently cut about 14% of its workforce as it pushed toward AI-driven teams, too.