Payward, the parent company of cryptocurrency exchange Kraken, is implementing a significant workforce reduction as part of its pre-IPO preparations. According to reports from CoinDesk, citing two individuals with knowledge on the matter, the company is cutting 150 jobs, affecting about 5% of its 3,000-person global workforce. This latest reduction forms part of a broader optimization push aimed at improving margins and creating a leaner financial profile before going public. A Payward spokesperson declined to address specific personnel decisions, stating the company continually evaluates its structure to align talent with strategic priorities. The cuts are being framed internally as an optimization exercise ahead of Kraken's planned public listing. The reduction mirrors a broader trend across the crypto industry, where companies are shifting from growth-at-all-costs strategies to more sustainable business models, potentially making Kraken more attractive to institutional investors.
The current cuts extend a sustained workforce reduction that began in October 2024, when Payward eliminated about 400 roles, or roughly 15% of staff. The reduction followed shortly after Arjun Sethi joined David Ripley as co-CEO, with further cuts then following in early 2025 as the company merged overlapping teams. Despite the ongoing layoffs, hiring continues in select growth areas, including derivatives, payments, and tokenized assets. Workforce optimization has become a common pre-IPO strategy for crypto firms, as trimming costs strengthens key profitability metrics that public investors scrutinize. The move comes after a period of rapid expansion during the crypto bull market, followed by a more cautious approach amid regulatory uncertainty and market volatility.
Payward filed a confidential S-1 registration statement with the SEC in November 2024, targeting a public valuation near $20 billion. However, the firm paused its listing timeline in March 2026 due to weaker performance among recent crypto listings that had cooled investor appetite. Co-CEO Arjun Sethi has publicly stated the company is roughly 80% ready to go public, with his comments signaling the S-1 remains active despite the delay. The company is also apparently seeking fresh private capital at a $20 billion valuation, as reported by CoinDesk. The company closed an $800 million funding round at the time of the SEC filing, which established the current $20 billion valuation. Sources now indicate the firm intends to revive the listing once market conditions become more favorable. The layoffs may be interpreted by analysts as a sign that Payward is preparing for the scrutiny and cost discipline required of a public company.
Despite the IPO delay, Payward continues to expand through strategic collaborations and regulatory developments. On May 12, Payward and global investment manager Franklin Templeton announced a strategic collaboration aimed at bringing traditional financial products on-chain and expanding their utility across digital asset markets. Together, the two firms plan to develop actively managed investment products built on blockchain infrastructure, making strategies from one of the world's largest asset managers tradeable on-chain for the first time. They will also work on tokenized yield-focused products designed for institutional clients and, where permitted, Kraken's broader retail user base. Additionally, Payward recently filed with the Office of the Comptroller of the Currency (OCC) for a national trust company charter, signaling its commitment to expanding traditional financial services in the digital asset space. The coming months will be critical as Kraken awaits SEC approval and sets the terms for its IPO, with the layoffs aimed at eliminating redundancies and sharpening the company's focus as it transitions from a private to a public entity.
