Kraken Cuts Jobs Before IPO

CRYPTO
Kraken Cuts Jobs Before IPO

Crypto exchange Kraken has laid off hundreds of employees in recent months as it streamlines operations ahead of a potential IPO in the U.S., according to sources familiar with the matter. The downsizing includes cuts across all departments and follows a 15% workforce reduction last October, when Arjun Sethi became co-CEO alongside David Ripley. Insiders say the layoffs have continued in waves since then, aimed at improving Kraken’s EBITDA and overall efficiency.

The leadership had previously stated their intent to shed unnecessary organizational layers to make Kraken leaner and faster. A spokesperson for the company confirmed the cuts, explaining that Kraken is consolidating teams where redundancies exist while still hiring in strategic areas. Despite the layoffs, Kraken is expanding its product offerings, recently announcing the acquisition of derivatives platform NinjaTrader and the addition of stock trading. These moves signal preparation for a public listing, in line with trends across the crypto industry.

TECH
Netflix Surpasses Earnings Expectations Again

Netflix shares jumped over 4% in after-hours trading Thursday after the company beat Wall Street expectations for Q1 earnings and reaffirmed a strong 2025 outlook. Revenue reached $10.54 billion, slightly above forecasts, while earnings per share soared to $6.61 versus an expected $5.71. Despite historically low U.S. consumer confidence and economic uncertainty, Netflix remains optimistic. Co-CEO Greg Peters noted that customer engagement and retention remain stable.

Executives say entertainment spending often holds steady during downturns, and Netflix’s range of plans, including a $8 ad-supported option, offers flexibility for cost-conscious users. While advertising is still a small revenue stream and may be vulnerable in a weaker economy, new tools are making it more appealing to marketers. Netflix no longer reports quarterly subscriber numbers, arguing they don’t reflect the company’s evolving model. The company remains focused on its five-year plan to reach a $1 trillion market cap by 2030, driven by content, ads, and innovation.

ECONOMY
Japan Inflation Stays Above Target

Japan’s inflation rose 3.6% year-on-year in March, marking the third consecutive year above the Bank of Japan’s 2% target. While slightly lower than February’s 3.7%, underlying inflation remains elevated. The “core-core” inflation rate—excluding fresh food and energy—rose to 2.9%, up from 2.6%, while core inflation, excluding fresh food only, hit 3.2%, matching expectations.

These figures come amid ongoing trade talks with the U.S., where President Trump has paused proposed 24% tariffs on Japan for 90 days, though 25% tariffs on auto, steel, and aluminum remain in effect. Analysts suggest these tariffs could weaken GDP growth, limiting the BOJ’s ability to raise interest rates. Nomura now forecasts only one rate hike—delayed until January 2026—and expects Japan’s GDP to be nearly flat in Q3 2025. Wage growth, likely to slow due to economic strain, could further complicate future monetary tightening, especially around the 2026 shunto, Japan’s annual spring wage negotiations.

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