USDPayward Cuts 150 Jobs Ahead of Kraken IPO Push
Kraken Parent Streamlines Workforce While Pursuing Public-Market Readiness
TL;DR
- Payward is cutting about 150 jobs as it prepares for a planned IPO.
- The layoffs affect roughly 5% of a global workforce of approximately 3,000 employees.
- The company is still investing in derivatives, payments, tokenized assets, funding, and acquisitions.
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Payward, Inc., the parent company doing business as Kraken, is cutting about 150 jobs as part of an optimization effort ahead of a planned initial public offering, reducing roughly 5% of a global workforce of approximately 3,000 employees.
The latest confirmed update, published May 15, 2026 and updated at 15:19 UTC, described the layoffs as part of a broader effort to improve margins and present a leaner financial profile before any public-market debut. Kraken declined to comment on the reported job cuts, while the restructuring was described as an internal reorganization effort intended to optimize the company and strengthen its financials before a listing.
CoinDesk reported, citing two individuals with knowledge of the matter, that Payward “is cutting about 150 jobs as part of an optimization effort ahead of a planned IPO.” A Payward spokesperson declined to address specific personnel decisions, while the company’s stated position was that it continually evaluates its structure to align talent with strategic priorities.
IPO Preparation Follows Earlier Workforce Reductions
The latest cuts extend a multi-year workforce reduction that began in October 2024, when Payward eliminated about 400 roles, or roughly 15% of staff, shortly after Arjun Sethi joined David Ripley as co-CEO. Further job reductions followed in early 2025 as Payward merged overlapping teams, while hiring continued in selected growth areas including derivatives, payments, and tokenized assets.
Payward confidentially initiated the IPO process with the U.S. Securities and Exchange Commission on November 19, 2025, through a confidential S-1 registration statement tied to a targeted public valuation near $20 billion. The company paused or shelved its listing timeline in March 2026 after weaker performance among recent crypto listings cooled investor appetite for new public crypto-market debuts.
Kraken co-CEO Arjun Sethi later said at Consensus Miami that the exchange is “about 80% ready” to go public, signaling that the IPO process remains active despite the delayed timeline. Payward also closed an $800 million funding round around the time of the SEC filing, establishing the valuation now informing IPO discussions.
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Acquisitions Continue Despite Cost Cuts
Kraken is seeking fresh private-market funding at a $20 billion valuation, placing the job cuts alongside a broader capital-positioning effort before any public listing. The company has continued expanding through acquisitions even as it reduces staff and consolidates internal teams.
Payward has acquired eight companies since the start of 2025, including a $1.5 billion purchase of U.S. futures platform NinjaTrader, a $550 million acquisition of CFTC-licensed derivatives platform Bitnomial, and a $600 million acquisition of stablecoin payments firm Reap Technologies.
The final confirmed picture is that Payward is cutting costs and consolidating staff while still investing in derivatives, payments, tokenized assets, private funding, and acquisitions. The company is not retreating from expansion, but trying to make its financial profile more IPO-ready.
Payward is also partnering with Franklin Templeton to develop onchain investment products for institutional investors, announced on May 12, 2026. The collaboration targets tokenized yield products, equities, and custody services, linking Franklin Templeton’s $1.74 trillion in assets with Payward’s xStocks framework, which has processed over $30 billion in trading volume. The initiative aims for actively managed tokenized products and integrates BENJI tokens for collateral and yield.
FAQ
Why is Payward cutting jobs?
Payward is optimizing operations and improving margins ahead of a planned IPO.
How many jobs are affected?
About 150 jobs are being cut.
Is Kraken still pursuing an IPO?
Yes. Arjun Sethi said Kraken is “about 80% ready” to go public.
Is Payward still expanding?
Yes. Payward has continued acquisitions and hiring in selected growth areas.
This article has been refined and enhanced by ChatGPT.
