Last year, many crypto companies and startups experienced turmoil due to unrest in the space. In addition, the negative impact of the crypto season has affected many businesses as the price of crypto assets has fallen below the expected level.
As a result, many crypto-related companies have started implementing restructuring strategies from the beginning of 2023. Chainalysis is one of the companies that have taken proactive steps to prepare the ground for the year.
Chainalysis Prepares For Reorganization
Report from Forbes revealed The blockchain research company Chainalysis plans to lay off some employees. According to the report, Maddie Kennedy, director of communications at the company, stated that the company is undergoing restructuring.
The company plans to lay off some non-core personnel, particularly the sales team. Then, it will reshuffle other staff roles while creating a new organizational structure.
Chainalysis says that layoffs are necessary to reduce the impact of business decline in the private sector. It tells us that customers have stopped trading in crypto because they have become more cautious about the losses that have increased in the industry since last year. Users tend to stay safe as asset prices drop, and more reports of exploits and platform implosions skyrocket.
Furthermore, Chainalysis shows that a restructuring plan is necessary as the company refocuses on new areas. This will include the creation of new products suitable for the financial sector while targeting general clients.
The blockchain analytics company has several private sector customers, such as Robinhood (online brokerage) and BNY Mellon (custodian bank). Also, securities services companies and other government entities like the Securities and Exchange Commission, the US Federal Bureau of Investigation, and the Drug Enforcement Administration are customers. These entities have contributed around 60% of sales to Chainalysis in the past.
Layoffs are part of the Company’s Refocus Strategy
The blockchain analytics company laid off 44 of its 900 staff, representing 4.8% of its workforce. The layoffs are part of the company’s reorganization plan to help refocus its business strategy in 2023.
Chainalysis CEO Michael Gronager announced some of the company’s plans during the World Economic Forum in Davos in January.
According to the CEO, the company will acquire a small research-related company that will support Chainalysis’ operations. After the acquisition is completed, Chainalysis will continue to recruit staff during the year, increasing its workforce by 11%. This new value will satisfy the employees who have been fired in the company.
According to report from Bloomberg, the downsizing of Chainalysis is relatively low compared to the recent ones from other companies this year.
However, some crypto-related companies are reducing their staff strength in January 2023. For example, Crypto.com is shutting down 20% of its personnel, stated the impact of the collapse of the crypto exchange FTX. It shows that 490 of the company’s 2,450 employees were laid off.
Also, Luno, a crypto exchange owned by DCG, was cut 35% of the workforce due to the prevailing bearish trend in the crypto market. The number represents more than 330 employees of the exchange.
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