Payward, the parent company of cryptocurrency exchange Kraken, is laying off 150 employees as part of a restructuring push designed to streamline operations before a planned initial public offering and to help secure fresh capital.
A trim before the listing
The job cuts affect roughly 15% of Payward's workforce, according to people familiar with the matter. The company said the reductions are part of a broader effort to tighten operations and position itself for the next growth phase. Kraken has been eyeing a public listing for months, and the move signals that leadership is serious about cleaning up the balance sheet ahead of that milestone.
Payward isn't alone in downsizing. Crypto firms have been slashing headcount throughout a prolonged market downturn, but the timing here is notable — cutting staff while preparing to go public suggests the company wants to show investors it can run lean.
Why the cuts now
The layoffs come as Kraken faces mounting regulatory pressure in the U.S. and abroad. The company has been in an ongoing legal battle with the Securities and Exchange Commission over whether certain tokens listed on its platform are unregistered securities. Settling that dispute — or at least reducing legal exposure — is seen by analysts as key to a successful IPO.
Payward declined to comment on the specific regulatory hurdles. But the company's decision to shed roles and seek new capital indicates it's trying to shore up resources for whatever comes next.
What's left for remaining staff
Employees who stay will likely see a reshuffled org chart. Some departments are merging, and a few teams are being dissolved entirely. The company has not specified which divisions are hit hardest, but sources say engineering and support roles are among those affected.
Kraken has about 1,000 employees remaining after the cuts. The exchange continues to operate normally, and customer funds are unaffected, the company said in an internal memo.
The road to public markets
Kraken first disclosed plans to go public in 2021, but the process stalled as crypto markets crashed and regulators cracked down. The job cuts are the latest sign that management is restarting the IPO engine. Whether Payward can complete the listing — and when — remains an open question. The company hasn't set a timeline.
