Chainalysis proceeds with the second workforce cut of the year.
Chainalysis, the blockchain analytics firm, is downsizing its workforce by 15% amid ongoing market challenges, like a prolonged bear market.
According to the statement shared on October 3rd, Chainalysis confirmed that it is laying off around 135 staff members, bringing the total workforce down from its previous 900-strong team.
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The announcement specifies the company's focus on operational efficiency as the crypto market continues to show signs of stagnation.
Madeleine Kennedy, the Vice President of Communications at Chainalysis, stated:
While Chainalysis continues to be well positioned for long-term success as a consistently top-performing software company, we are very focused on growing efficiently and, due to market conditions, believe it necessary to reduce our expenses at this time.
She further affirmed the company's commitment to fostering trust in blockchain technology among governments, financial institutions, and businesses within the cryptocurrency space.
According to the recent report shared by Forbes, in an email, Chainalysis CEO Michael Gronager indicated that these layoffs would predominantly affect the private sector marketing and business development departments. The company's spokesperson confirmed the news.
This is the second time Chainalysis has been forced to make cuts this year. Earlier in February, around 40 to 50 jobs were lost during a reorganization triggered by deteriorating market conditions.
Chainalysis is not alone in these cutbacks; last month, Binance.US let go one-third of its staff amid escalating regulatory pressures. The ongoing bearish trends in the crypto market have affected not just Chainalysis but also the entire industry. It is estimated that compared to 2021, the crypto market cap has dropped by 64%, with Bitcoin (BTC) also failing to surpass the $30,000 mark.
The recurrent workforce reductions at Chainalysis reflect broader challenges in the crypto industry, exacerbated by an enduring bear market and shrinking demand for commercial products. These cuts at Chainalysis come as a stark reminder of the volatility and uncertainties that continue to loom over the cryptocurrency sector.
