Blockchain analytics firm Chainalysis has announced a 15% reduction in its workforce, citing the need to cut expenses in response to the ongoing bear market. The company confirmed that approximately 135 employees have been let go, accounting for the latest round of cuts.
According to Chainalysis Vice President of Communications, Madeleine Kennedy, while the company remains well positioned for long-term success, it is focused on efficient growth and believes it is necessary to reduce expenses in light of current market conditions. Kennedy emphasized the company’s commitment to building trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses.
The firm previously had around 900 employees, and this marks the second round of cuts this year. The crypto bear market has led to a decrease in demand for commercial products, prompting the need for reorganization. In February, Chainalysis had already cut around 40-50 jobs.
Due to the decline in digital asset market capitalization by 64% since its peak, markets have seen limited activity with reduced volatility, liquidity, and trading volumes. Bitcoin has struggled to surpass $30,000 resistance and has remained range-bound for the past six months.
A recent email from Chainalysis CEO Michael Gronager to staff suggests that the cuts will primarily affect marketing and business development teams focused on the private sector. The company has confirmed the accuracy of this information.
Similar to Chainalysis, many other leading crypto and blockchain companies have also been forced to reduce their workforce this year. Binance.US, for example, laid off one-third of its staff in September due to mounting regulatory pressure. In addition, R3, a venture-backed blockchain firm, let go of 20% of its workforce in the previous month.