Last year, many crypto firms and startups went under due to the turmoil in the space. In addition, the devastating impact of the crypto winter affected many businesses as prices of crypto assets fell below expected levels.
As a result, many crypto-related firms have started implementing restructuring strategies right from the beginning of 2023. Chainalysis is one of the firms making a proactive move to prepare its grounds for the year.
Chainalysis Prepares For Reorganization
A report from Forbes revealed that the blockchain research company Chainalysis plans to lay off some of its employees. According to the report, Maddie Kennedy, the director of communications at the firm, stated that the company is restructuring.
The company plans to lay off some non-core personnel, especially the sales team. Then, it will reshuffle the roles of other staff while creating a new organizational structure.
Chainalysis mentioned that the layoff is necessary to cushion the impact in the decline of business in the private sector. It recounted that customers had dropped their transactions in crypto as they were becoming more cautious of the increasing losses in the industry from last year. Users tend to keep safe as asset prices drop, and more reports of exploits and implosion of platforms are skyrocketing.
Further, Chainalysis indicated that its restructuring plan is necessary as the firm refocuses on new areas. This will include creating new products suitable for the financial sectors while targeting public clients.
The blockchain analytics firm boasts several private-sector customers, such as Robinhood (an online brokerage) and BNY Mellon (a custodian bank). Also, other securities-service firms and government entities like the Securities and Exchange Commission, the US Federal Bureau of Investigation, and the Drug Enforcement Administration are its customers. These entities have contributed to about 60% of sales for Chainalysis in the past.
Layoff Part Of Company’s Refocus Strategy
The blockchain analytics firm dismissed 44 out of its 900 staff, representing 4.8% of its workforce. This layoff was part of the company’s reorganization plan to help refocus its business strategy in 2023.
The CEO of Chainalysis, Michael Gronager, disclosed some of the firm’s plans during the World Economic Forum in Davos in January.
According to the CEO, the company would acquire research-related smaller firms that would support the operations of Chainalysis. Once the acquisitions are completed, Chainalysis will gear for staff recruitment in the year, increasing its workforce by 11%. This new value will cushion the previously laid-off staff in the company.
According to the report from Bloomberg, Chainalysis’s downsizing is relatively low compared to the recent ones from other companies this year.
However, some crypto-related firms reduced their staff strength in January 2023. For example, Crypto.com laid off 20% of its perosonnel, citing the impact from the downfall of crypto exchange FTX. This indicated that 490 out of the company’s 2,450 employees were dismissed.
Also, Luno, the DCG-owned crypto exchange, cut down 35% of its 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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