Blockchain analytics company Chainalysis has implemented a further 15% reduction in its workforce this week in response to the challenging conditions in the bearish cryptocurrency market. On October 3rd, Chainalysis confirmed that it had reluctantly parted ways with approximately 135 employees, constituting 15% of its staff.
Chainalysis Vice President of Communications, Madeleine Kennedy, stated, “While Chainalysis remains well-positioned for long-term success as a consistently top-performing software company, we are keenly focused on achieving efficient growth. Given the prevailing market conditions, we find it necessary to curtail our expenses at this juncture.”
Kennedy emphasized the company’s unwavering commitment to its mission of fostering trust in blockchain technology among government entities, financial institutions, and cryptocurrency enterprises.
Chainalysis had around 900 employees prior to this latest round of cutbacks. This marks the second workforce reduction for the company this year, driven by the prolonged bear market in the cryptocurrency sector. In February, Chainalysis streamlined its operations by letting go of approximately 40-50 employees due to deteriorating market conditions.
The digital asset market has witnessed a significant 64% decline from its peak nearly two years ago. Throughout this year, the markets have remained relatively stagnant, characterized by diminished volatility, liquidity, and trading volumes. Bitcoin, in particular, has struggled to breach the $30,000 resistance level, remaining within a tight trading range for the past six months.
An email from CEO Michael Gronager to Chainalysis staff, as reported by Forbes, indicates that the majority of the cuts will impact the marketing and business development teams primarily focused on the private sector. Chainalysis has confirmed the accuracy of this information.
This year, several prominent companies in the crypto and blockchain space have been compelled to reduce their workforce. In September, Binance.US laid off a third of its employees due to increasing regulatory scrutiny, while last month, venture-backed blockchain firm R3 downsized its workforce by 20%.