Nikolas Sargeant
Kraken, a major cryptocurrency exchange, announced Wednesday the appointment of Arjun Sethi as co-CEO alongside Dave Ripley, while simultaneously implementing a 15% workforce reduction affecting 400 employees.
The restructuring includes the departure of Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar. Sethi, who served on Kraken's board for nearly 4 years, joins Ripley, who became CEO in 2023 following founder Jesse Powell's departure.
Strategic Organizational Shift
In a Wednesday blog post, Sethi and Ripley acknowledged organizational challenges: "We fell into the trap of building organisation layers." They emphasized a new focus on keeping top talent engaged in development rather than management.
Key points from the announcement:
- Net revenue exceeded $1 billion
- Shift from management-heavy structure
- Focus on direct contributor engagement
Crypto Industry Adjustments
The changes at Kraken reflect broader industry movements:
- Earlier plans to raise $100m for potential IPO remain pending
- Consensys cut 20% (160+ employees)
- dYdX reduced core team by 35%
These organizational changes come during a robust crypto market period, with Bitcoin trading around $72,256, showing a 7% weekly gain and approaching new highs.
The restructuring signals Kraken's commitment to streamlining operations while maintaining growth momentum in the evolving crypto landscape.
