Kraken Parent Payward Makes Deep Cuts as IPO Pressure Mounts

Payward, the parent of cryptocurrency exchange Kraken, is cutting 150 jobs ahead of its planned U.S. stock-market listing. The reduction affects about 5% of its 3,000-person global workforce.

The move forms part of a broader optimization push aimed at improving margins. Management wants a leaner financial profile before going public.

Layoffs Continue a Multi-Year Lean-Out

The latest cuts extend a sustained workforce reduction that began in October 2024. Payward eliminated about 400 roles then, or roughly 15% of staff.

The reduction followed shortly after Arjun Sethi joined David Ripley as co-CEO. Further cuts then followed in early 2025 as the company merged overlapping teams.

A Payward spokesperson declined to address specific personnel decisions. The company continually evaluates its structure to align talent with strategic priorities.

Meanwhile, hiring continues in select growth areas, including derivatives, payments, and tokenized assets.

Workforce optimization has become a common pre-IPO playbook for crypto firms. Therefore, trimming costs strengthens key profitability metrics that public investors scrutinize.

IPO Plans Remain on Hold

Payward filed a confidential S-1 registration statement with the SEC in November 2025. The filing targets a public valuation near $20 billion.

However, the firm paused its listing timeline in March 2026. Weaker performance among recent crypto listings had cooled investor appetite.

Co-CEO Arjun Sethi has publicly stated the company is roughly 80% ready to go public. His comments signal the S-1 remains active despite the delay.

Meanwhile, Payward continues to expand through acquisitions, including NinjaTrader for derivatives and Reap Technologies for stablecoin payments.

Payward closed an $800 million funding round at the time of the SEC filing. The round established the $20 billion valuation now informing IPO discussions.

The financing followed a wave of secondary investments from traditional finance partners.

Whether Payward returns to the IPO queue this year may hinge on how the next wave of crypto listings performs.