Key Points:
- Blockchain analysis company Chainalysis is laying off about 44 of its 900 employees, accounting for 4.8% of its total workforce.
- Chainalysis announced a “reorganization” of less than 5% of the workforce. Some employees, mostly in sales, were let go, and others will have new duties and reporting lines.
- The principal reason for the cuts was collapsing private-sector demand as digital-asset prices and trading volume plummeted.
According to Forbes, the blockchain analysis company Chainalysis is laying off about 44 of its 900 employees, accounting for 4.8% of its total workforce.
Chainalysis announced it would “reorganization” less than 5% of its workforce, confirmed the company’s director of communications, Maddie Kennedy, adding that some employees would take on new roles and titles while others who were primarily in sales would be let go.
The media said it had obtained detailed information in a message released by Chainalysis leadership. The main reason for the layoffs was that demand from the private sector plummeted as digital asset prices and trading volumes plummeted. Other reasons included a renewed focus on developing new products targeting the financial sector and a greater focus on public customers.
The crypto forensics company has historically focused more on governmental organizations, such as the U.S. Federal Bureau of Investigation, Drug Enforcement Administration, and the SEC, which historically accounted for about 60% of sales. The company’s private-sector clients include online brokerage Robinhood and BNY Mellon, the custodian bank and securities services company.
The wave of layoffs in the crypto industry is still underway, although the market is showing positive signs after months of bloodshed.
The US-based cryptocurrency exchange Coinbase is cutting its employment in Japan as part of a wider initiative to lay off 25% of its workforce. In addition, 700–900 employees of Crypto.com were also laid off as the result of industry-wide difficulties. The exchange, which has been plagued by legal troubles recently, Gemini, also cut its workforce by 10% recently.
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