Payward, the parent company of crypto exchange Kraken, has cut about 150 jobs from a workforce of roughly 3,000, according to Bloomberg. The reduction amounts to around 5% of total headcount and arrives at a moment when the company continues to reposition itself ahead of a long-awaited public listing.
The company did not confirm the exact number of layoffs. A Kraken spokesperson said in emailed comments:
"We don't comment on specific personnel or operational decisions. As a high performance culture, we continually evaluate and evolve our organization to ensure we have the right structure and talent in place to optimize growth and deliver for our clients."
The statement reflects a broader pattern in the sector, where companies avoid specifics while pointing to structural adjustments.
Payward attributed the cuts to efficiencies gained through artificial intelligence deployments. The company has not indicated plans for additional layoffs at this stage. The explanation places Kraken among a growing list of crypto firms that link workforce reductions to AI integration, though details on how those efficiencies translate into specific job eliminations remain limited.
IPO timeline shifts again
The layoffs come as Payward’s IPO plans continue to move. The company confidentially filed a draft S-1 registration statement with the U.S. Securities and Exchange Commission on Nov. 19, 2025, which marked an early step toward going public. That process stalled in March after the firm paused its plans due to market conditions.
New indications suggest a further delay. It is more likely that the listing will take place in 2027 than it will be earlier. At Consensus Miami this month, co-CEO Arjun Sethi said the company is "about 80% ready" to go public. He did not provide a timeline onstage, but the comment signals internal progress despite external uncertainty.
The delay reflects broader pressure across crypto markets. A decline in prices since late last year has affected company balance sheets, with several public firms reporting losses in recent earnings periods. That environment has complicated listing plans across the sector.
Fundraising and acquisitions continue
Even as Payward reduces staff, it continues to pursue expansion through acquisitions and fundraising. The company is raising fresh private capital at a valuation of around $20 billion. The fundraising effort comes alongside an aggressive acquisition strategy that has reshaped its business over the past year.
In 2025, Payward acquired NinjaTrader, a U.S.-based retail futures platform and CFTC-registered futures commission merchant, for $1.5 billion. It followed that deal with the purchase of digital asset derivatives platform Bitnomial for $550 million and stablecoin payments firm Reap Technologies for up to $600 million. The combined value of those transactions reaches approximately $2.65 billion.
The contrast stands out. The company has committed billions to expansion while reducing headcount and delaying its IPO. One person familiar with the matter described the layoffs as part of an optimization process ahead of the planned public listing.
Industry cuts accelerate under AI banner
Kraken’s move does not stand alone. The same week, blockchain data platform Dune cut 25% of its workforce. CEO Fredrik Haga framed the decision as a shift toward new products, including Dune MCP, which allows teams and AI agents to query onchain data without writing SQL.
Earlier this month, Coinbase reduced its workforce by about 700 employees, or roughly 14%, with CEO Brian Armstrong pointing to increased AI use inside the company. Other firms have followed similar paths this year. Gemini cut around 200 roles, while Crypto.com reduced about 180 positions. Block Inc. announced one of the largest cuts in February, eliminating about 4,000 jobs, which represented roughly half its workforce.
Across the sector, more than 5,000 crypto-related jobs have disappeared in 2026 so far, with many companies citing AI-driven efficiencies. At the same time, some executives have warned that the narrative may not always reflect the full picture. OpenAI CEO Sam Altman has cautioned against "AI washing," where companies attribute layoffs to artificial intelligence to frame cost reductions as innovation.
Questions remain over AI’s role
Payward has offered little detail beyond its general efficiency argument. The company has not outlined which roles were affected or how AI systems replaced specific functions. That lack of transparency leaves open questions about whether AI acts as a primary driver or a secondary justification.
What is clear is that AI has become the standard language for explaining workforce changes in crypto. Kraken’s layoffs, IPO delay, and continued dealmaking illustrate a sector in transition, where companies balance growth ambitions with tighter cost structures.
For employees affected by the cuts, the shift reflects a familiar pattern in the industry. Hiring surged during previous market highs, followed by sharp reversals when conditions changed. This cycle now intersects with a new variable: automation at scale, which companies present as both a necessity and an opportunity.
Kristian Koch
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