The extended crypto winter continues to bite harder as on-chain forensics firm, Chainalysys has announced a downsizing exercise due to declining interest from the private sector.
Due to the lingering market, wide-sell of the company will be laying off 44 of its 900 employees and 4.8% of its workforce. The crypto forensics company’s private sector clients include financial security provider BNY Mellon and Robinhood, the online brokerage firm. These companies have diverted their resources as they focused more on governmental bodies, like the Drug Enforcement Administration, the U.S. Federal Bureau of Investigation, and the SEC. Reallocated resources previously accounted for about 60% of sales. Despite the growth of institutional demand for digital currencies, this need has yet to extend into the human resource arm.
However, Chainalysis’ director of communications confirmed that the company is planning a “reorganization” of less than 5% of its current workforce. She stated that some staff would be assigned new roles and reporting lines while others, particularly in sales, were laid off.
Other Reasons For The Layoff
According to the firm’s leadership, the principal reason for this cut was the declining interest from the private sector. They added that other reasons included a redirection to new products that will create value for the finance sector and a bigger emphasis on public clients. This development which is also a ripple effect from plummeting trade volume over the past months has caused the firm, just like many others, to suffer.
Will the downsizing exercise continue to extend to more crypto firms? Let us know your thoughts in the comment section below.
