Crypto exchange Kraken has cut 150 staff, citing rising efficiencies from artificial intelligence, in a move that could delay its planned US initial public offering until 2027, according to a May 18 Bloomberg report.
The company, officially named Payward Inc., made the cuts as AI is deployed more extensively across the business, a person familiar with the matter told Bloomberg. The source noted that Kraken is not planning more immediate job cuts. The exchange did not provide an immediate official comment on the matter.
Kraken’s move is part of a wider trend that has seen crypto-related companies cut more than 5,000 jobs so far in 2026. Block Inc. led the downsizing with a 4,000-staff reduction in February, about half its workforce, in an AI-driven restructuring. Earlier in May, Coinbase cut 700 employees, or 14% of its staff, also citing a shift toward AI.
The layoffs at Kraken, Coinbase, Gemini, and Crypto.com highlight a strategic pivot within the digital asset industry toward leaner, AI-augmented operations. While Citadel CEO Ken Griffin recently warned that AI is now automating "extraordinarily high-skilled" finance jobs, some crypto leaders see an opportunity.
Bitwise CEO Hunter Horsley has actively pitched crypto as a destination for tech workers displaced by AI, arguing the industry needs their pragmatic engineering skills to solve problems around financial access. The trend comes as traditional finance giants like JPMorgan and BlackRock are reportedly hiring crypto-fluent talent, creating a complex job market where crypto-native firms are cutting staff while TradFi is selectively hiring it.
The delay in Kraken's IPO, which was confidentially filed for in November before being paused in March, underscores the operational and market pressures facing exchanges. Investors will be watching to see if these AI-driven efficiencies can build a stronger case for a public debut in 2027.
This article is for informational purposes only and does not constitute investment advice.
