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Chainalysis reduces workforce by an additional 15% due to challenging market circumstances.
Blockchain analytics company Chainalysis has decreased its workforce by an additional 15% this week, citing the necessity to cut costs amid ongoing bear market challenges.
On Oct. 3, Chainalysis confirmed to Cointelegraph that it had made the tough choice to let go of 15% of its employees, which equates to roughly 135 staff members.
“Although Chainalysis remains well positioned for long-term success as a consistently high-performing software firm, we are highly focused on growing efficiently and, due to market conditions, find it essential to lower our expenses at this time,” stated Chainalysis Vice President of Communications, Madeleine Kennedy.
She further emphasized, “We are dedicated to our mission of fostering trust in blockchains among government entities, financial institutions, and cryptocurrency enterprises.”
A representative for Chainalysis confirmed that the firm had approximately 900 employees prior to the latest reductions.
This marks the second round of layoffs for the company this year, as the persistent crypto bear market has diminished the demand for commercial offerings. In February, Chainalysis eliminated around 40-50 positions as part of a reorganization in response to deteriorating market conditions.
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The market capitalization of digital assets has decreased by 64% from its peak nearly two years ago. This year, markets have largely remained stagnant, with volatility, liquidity, and trading volumes declining. Additionally, Bitcoin has struggled to surpass resistance above $30,000 multiple times and has stayed within a range for the past six months.
A Forbes report referencing an email from CEO Michael Gronager to employees indicates that the layoffs will primarily affect marketing and business development teams targeting the private sector.
The Chainalysis representative has verified the accuracy of the information in the report.
Related: Petition aims to prevent US government agencies from utilizing Chainalysis’ forensics
Very few prominent crypto and blockchain firms have managed to avoid staff reductions this year.
In September, Binance.US laid off a third of its workforce as regulatory pressures increased. Last month also saw venture-backed blockchain company R3 reduce its workforce by a fifth.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
