Kraken laid off roughly 150 workers in the last week, and its long-awaited initial public offering is now unlikely before 2027 — pushed back by at least a year. The cuts, driven by the exchange's growing use of artificial intelligence across operations, come as crypto companies have shed more than 5,000 jobs so far in 2026.
The AI-driven cuts
Kraken's layoffs are the latest in a string of workforce reductions across the industry tied to automation. The exchange had filed confidentially with US regulators late last year, then put those plans on hold in March as crypto prices fell. Now, with AI taking over tasks once handled by humans, the headcount is shrinking further.
Kraken hasn't publicly confirmed the layoffs or the revised IPO timeline. But the moves align with a pattern playing out across the sector: companies replacing manual processes with software and cutting staff as a result.
IPO pushed back
The IPO delay is the bigger story for investors. Kraken's confidential filing late last year signaled it was serious about going public. Then came the March pause. Now sources say the offering is at least a year off — likely slipping into 2027 or later. The timing isn't great. Crypto prices have been under pressure, and the IPO window for digital-asset firms remains narrow.
A wider bloodletting
Kraken is far from alone. Coinbase cut 700 employees — 14% of its workforce — on May 5, 2026. Gemini and Crypto.com laid off about 200 and 180 staff respectively earlier this year. Block Inc. eliminated roughly 4,000 positions in February, about half its headcount. And crypto data firm Dune trimmed a quarter of its staff this week.
The total: more than 5,000 crypto jobs gone in 2026. AI adoption is repeatedly cited as a key driver, but the broader market downturn isn't helping.
Kraken's silence
Kraken has not commented on either the layoffs or the IPO timeline. That leaves employees and investors in the dark about what comes next. The exchange's next move — whether it confirms the cuts, updates its IPO plans, or offers a rationale — will be closely watched. For now, the industry keeps trimming headcount, and the public listing that once seemed imminent is now a distant prospect.
