Blockchain analytics firm Chainalysis reduced its headcount by another 15% this week, citing the need to reduce expenses due to the continued market decline.
On October 3, Chainalysis confirmed to Cointelegraph that it had made the difficult decision to part ways with 15% of its employees, amounting to approximately 135 employees.
“While Chainalysis remains well-positioned for long-term success as a consistently high-performing software company, we are laser-focused on growing efficiently, and given market conditions, we believe it is necessary to reduce our expenses at this time,” Chainalysis said. Vice President of Communications, Madeleine Kennedy.
“We are committed to our mission of building trust in blockchain among government agencies, financial institutions and cryptocurrency companies,” she added.
A Chainalysis spokesperson confirmed that the company had about 900 employees before the recent cuts.
It’s the company’s second round of cuts this year, as the ongoing bearish cryptocurrency market reduces demand for commercial products. In February, Chainalysis cut about 40-50 jobs as part of a reorganization in light of deteriorating market conditions.
The market capitalization of digital assets has fallen by 64% from its peak level reached almost two years ago. This year, markets have remained mostly flat with volatility, liquidity and trading volumes diminishing. Moreover, Bitcoin failed to break the resistance above $30,000 several times and has remained within a range for the past six months.
Forbes report according to An email from CEO Michael Gronager to employees indicates that the cuts will come primarily from the private sector-focused marketing and business development teams.
A Chainalysis spokesperson confirmed the accuracy of the information contained in the report.
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Quite a few leading cryptocurrency and blockchain companies have escaped having to lay off employees this year.
In September, Binance.US let a third of its employees go as regulatory pressure intensified. Last month also saw a blockchain company backed by the project R3 Ax one-fifth of its workforce.
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