AI Integration Prompts Kraken to Reduce Workforce by 150, May Push IPO to 2027: Sources
According to Bloomberg, the cryptocurrency exchange Kraken has eliminated 150 positions as artificial intelligence streamlines operations, contributing to over 5,000 job cuts in the crypto industry this year.
The cryptocurrency trading platform Kraken has allegedly reduced its workforce as part of a cost-reduction strategy, a move that may postpone its anticipated public market debut in the United States until the following year.
Approximately 150 employees were let go by the firm, legally known as Payward, as artificial intelligence deployment across various business operations created new efficiencies, according to a Friday Bloomberg report that cited an anonymous source with knowledge of the situation.
According to the source, artificial intelligence technology is being implemented more broadly across Kraken's operations, though the exchange has no immediate plans for additional workforce reductions.
The cryptocurrency sector has eliminated more than 5,000 positions year-to-date, with numerous firms pointing to enhanced operational efficiencies gained through AI implementation as justification for workforce reductions. Block Inc. conducted the most significant round of job eliminations by any crypto-related firm thus far in 2026, removing 4,000 employees—representing approximately half of its total staff—in February as part of an AI-focused restructuring initiative.
Cryptocurrency valuations have experienced downward pressure since the end of last year, which has negatively impacted the financial statements of publicly traded crypto enterprises, with numerous organizations disclosing losses in their quarterly earnings reports for the first quarter.
The workforce reductions at Kraken have allegedly resulted in a postponement of the company's public listing plans from this year, with the organization now targeting a United States market debut in 2027.
Cointelegraph contacted Kraken for comment but had not received a response at the time of publication.
The exchange's public offering intentions have fluctuated over recent months. Last November, Kraken submitted a confidential filing with United States regulatory authorities to pursue a public listing, only to suspend those IPO plans in March amid deteriorating cryptocurrency market conditions.
When questioned on stage at a conference last month about whether the company intended to pursue a public listing in the near future, Kraken co-CEO Arjun Sethi confirmed the existence of Kraken's confidential IPO filing, though he declined to provide specific timing details.
Kraken's workforce reduction announcement arrives during the same week that Dune, a cryptocurrency data analytics company, disclosed it had eliminated 25% of its staff, explaining the decision as necessary to reorganize its business operations and concentrate on its primary product offerings.
On May 5, earlier this month, Coinbase reduced its workforce by 700 employees—approximately 14% of its total staff—attributing the decision to increased artificial intelligence adoption.
Competing cryptocurrency trading platforms Gemini and Crypto.com similarly reduced their workforces by 200 and approximately 180 employees, respectively, during earlier months of this year, with both organizations attributing the cuts to expanding AI utilization.