Chainalysis axes another 15% of staff citing difficult market conditions

The Chainalysis workforce will be reduced by around 150 as the bear market bites deeper.

Blockchain analytics firm Chainalysis has reduced its headcount by another 15% this week, citing the need to reduce expenses due to continued bear market blues.

On Oct. 3, Chainalysis confirmed to Cointelegraph that it had made the difficult decision to part ways with 15% of its employees, amounting to approximately 135 staff. 

“While Chainalysis continues to be well positioned for long-term success as a consistently top-performing software company, we are very focused on growing efficiently and, due to market conditions, believe it necessary to reduce our expenses at this time,” said Chainalysis Vice President of Communications, Madeleine Kennedy.

We remain committed to our mission to build trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses,” she added.

A spokesperson for Chainalysis confirmed the firm had around 900 employees before the most recent cuts.

It’s the second round of cuts for the company this year, as the ongoing crypto bear market has reduced the demand for commercial products. In February, Chainalysis cut around 40-50 jobs as part of a reorganization in light of worsening market conditions.

Digital asset market capitalization has fallen by 64% from its peak level almost two years ago. This year, markets have remained mostly flat with volatility, liquidity, and trading volumes dwindling. Moreover, Bitcoin has failed to break resistance above $30,000 several times and has remained range-bound for the past six months.

A Forbes report citing an email from CEO Michael Gronager to staff suggests the cuts will come mainly from marketing and business development teams focused on the private sector.

The Chainalysis spokesperson has confirmed the information in the report as accurate.

Related: Petition hopes to stop US government agencies from using Chainalysis’ forensics

Very few leading crypto and blockchain companies have escaped from having to axe staff this year.

In September, Binance.US let a third of its staff go as regulatory pressure intensified. Last month also saw venture-backed blockchain firm R3 axe a fifth of its workforce.

Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis