Chainalysis Cuts 15% Workforce Amid Persistent Crypto Bear Market
Summary:
Blockchain analytics firm Chainalysis has cut its workforce by 15% or approximately 135 staff, citing the need for cost reduction due to the ongoing bear crypto market. This downsizing, impacting mostly marketing and business development teams, is the second this year, having revealed a trim of 40-50 jobs in February. Blockchain firms across the industry, including Binance.US and R3, have had similar reductions in response to regulatory pressure and market conditions.
Chainalysis, a blockchain intelligence company, has made the challenging decision to further decrease its workforce by 15% this week, attributing the move to fiscal pruning necessitated by the persisting crypto bear market. On 3rd October, Chainalysis verified to Cointelegraph that around 135 staff, representing 15% of their workforce, had been let go. "Given the market's current state, we find it necessary to cut back on our expenses. Despite this, Chainalysis stays well placed for future success as a consistently high-achieving software firm and is committed to increasing growth efficiently," stated Madeleine Kennedy, Chainalysis' Vice President of Communications. Kennedy added, "Our objective to foster trust in blockchains among governmental bodies, financial organizations, and crypto enterprises remains unaltered." A Chainalysis representative confirmed that the company had approximately 900 employees before the latest downsizing. This is the second slice in the workforce this year, resulting from reduced commercial product demand due to the ongoing crypto bear market. Earlier in February, Chainalysis trimmed about 40-50 positions amid deteriorating market conditions. The capitalization of the digital asset market saw a 64% drop from its highest point close to two years back. The markets have remained largely static this year with dwindling volatility, liquidity, and trading volumes. Furthermore, Bitcoin hasn't been able to surpass the $30,000 mark multiple times and has been static for over six months. According to a report by Forbes citing an email from CEO Michael Gronager to employees, the cuts will predominantly impact the marketing and business development teams that serve the private sector. A Chainalysis representative validated the report's accuracy. Related: Campaign planned to prevent US governmental bodies from using Chainalysis’ forensics In an industry-wide trend, many leading crypto and blockchain companies were compelled to lay off employees this year. In September, Binance.US released one-third of its high-pressure regulatory staff, and last month, the venture-backed blockchain company, R3, downsized by 20%. Magazine: Blockchain sleuths: Origin of Chainalysis traced to Mt. Gox crash.
Published At
10/3/2023 3:27:38 AM
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