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The crypto industry as a whole has experienced many job cuts in response to poor market conditions.
Blockchain Analytics Firm Chainalysis has reduced its workforce by 15%, affecting approximately 150 employees as it grapples with the ongoing market downturn in the crypto industry. The job cuts mark the second round of layoffs for the company in 2023.
Company CEO Michael Gronagar informed employees of the decision in an email, saying the cuts were primarily intended to shift the company’s focus from the commercial market to government contracting, which provides greater stability in the current environment. .
Chainalysis is still committed to building trust in the crypto market
Forbes first reported the layoffs on Monday. Madeleine Kennedy, the company’s vice president of communications, confirmed this on October 3. reportSaying that job cuts were necessary to reduce expenses.
He further said that despite the new headcount cuts, the company remains committed to its mission of promoting trust in blockchain technology among government agencies, financial institutions, and crypto businesses.
“While Chainalysis is 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, consider it necessary to reduce our expenses at this time, ” They said. ,
The move is in line with the company’s strategic shift to prioritize profitability and adapt to changing market dynamics.
Chainalysis to focus on public sector amid staff shortage
According to the company, the layoffs will primarily impact its marketing and business development teams focused on the private sector, where market conditions have become increasingly challenging.
Bitcoin has seen a 60% decline in the crypto market (B T c) Prices dropped below their all-time high in November 2021, leading to reduced trading activity and demand for Chainalysis products, which help identify illicit transactions and ensure regulatory compliance.
As a result of these market changes, the company is shifting its focus towards the public sector, which already contributes 70% of its revenues. The blockchain analytics firm aims to expand its offerings to governments in line with their growing needs for blockchain-related regulatory oversight, including anti-money laundering rules, market conduct, prudential soundness and consumer protection.
The company, which is headquartered in New York, was founded in 2014 and has since become one of the leading data entities in the crypto industry. Chainalysis is famous for collaborating with governments, including the United States, on crypto-related investigations.
Crypto companies grapple with job cuts
The crypto industry as a whole has experienced many job cuts In response to poor market conditions. In 2022, many crypto companies including Crypto.com, Kraken, and Coinbase had to reduce their workforce. This trend continues in 2023 with Coinbase Inauguration In January of the year.
Shortly thereafter, Chainalysis conducted its first round of layoffs in February, affecting approximately 40 to 50 jobs. In March, Anchorage Digital, a crypto company that provides integrated financial services to institutional investors, followed in the footsteps of Chainalysis in reducing its workforce. Send 75 employees were laid off.
Other crypto companies like Elliptic and Messari also made layoffs, reducing about 10% and 15% of their staff, respectively.
Most recently, in September, the United States branch of Binance laid off a third of its employees due to increasing regulatory pressure in the country.
Chimamanda is a crypto enthusiast and experienced writer who focuses on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed her interest in emerging economies. She combines her passion for blockchain technology with her love for travel and food, bringing a new and engaging perspective to her work.
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