Chainalysis, a provider of blockchain analytics, is cutting 15% more jobs from its staff, marking the second round of layoffs this year. The decision is ascribed to the industry’s protracted bear market conditions, which have impacted demand for commercial goods and services.
Chainalysis acknowledged that the current job losses will effect about 135 individuals, or 15% of the staff. Due to the difficult market conditions, this downsizing is a move to cut costs. Before these layoffs, there were about 900 people working for the company.
While facing the need for cost reduction, Chainalysis remains dedicated to its mission of building trust in blockchain technology among government agencies, financial institutions, and cryptocurrency businesses, as stated by Madeleine Kennedy, Chainalysis Vice President of Communications.
This isn’t the first time Chainalysis has resorted to layoffs in 2023 due to the bear market’s impact. Earlier in February, the company let go of around 40-50 employees as part of a restructuring effort prompted by unfavorable market conditions.
The cryptocurrency market has witnessed a substantial decline in digital asset market capitalization, with a 64% decrease from its peak levels nearly two years ago. Throughout this year, the markets have mostly stagnated, with reduced volatility, liquidity, and trading volumes. Bitcoin, the leading cryptocurrency, has faced significant resistance in breaking the $30,000 price level and has been trading within a relatively narrow range for approximately six months.
![Chainalysis Cuts Staff by 15% Amid Crypto Winter image 16](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-16.png?resize=1024%2C681&ssl=1)
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CEO Michael Gronager reportedly communicated in an email to staff that the recent cuts would primarily affect marketing and business development teams that focus on the private sector. A spokesperson from Chainalysis confirmed the accuracy of this information, in line with a report from Forbes.
The cryptocurrency and blockchain industry as a whole has witnessed several companies resorting to workforce reductions in response to various challenges. Regulatory pressures, market conditions, and business reevaluations have led to layoffs in both startups and established firms. For example, Binance.US recently laid off a third of its staff due to intensifying regulatory scrutiny, and R3, a venture-backed blockchain firm, cut 20% of its workforce in the previous month.
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