Chainalysis Lays Off Another 150 Employees Amid Ongoing Market Downturn
In response to the ongoing market downturn and reduced commercial demand, blockchain analytics firm Chainalysis is laying off another 150 employees, representing over 15% of its workforce.
CEO Michael Gronager informed employees of the decision in an email on Monday evening, according to a recent report by Forbes.
The new round of layoffs comes as the decline in cryptocurrency prices over the past year has limited the demand for Chainalysis products, prompting the company to shift its focus away from the commercial market.
Instead, it will concentrate on government contracting, which provides a more stable revenue stream.
"We are going to focus on profitability and maturity and to ensure that we are agile in light of evolving market forces," Madeleine Kennedy, Vice President of Communications, said in a comment.
The majority of the layoffs will affect the marketing and business development teams that primarily serve the private sector.
These roles have become increasingly challenging as the price of Bitcoin has dropped by 60% from its all-time high of $69,000 in November 2021.
With reduced trading revenue and blockchain activity, the need for Chainalysis products, which assist cryptocurrency exchanges and companies in identifying illicit transactions and ensuring regulatory compliance, has diminished.
As the company pivots toward the public sector, which already accounts for 70% of its revenue, it aims to expand its core offerings' investigative capabilities to meet the future needs of governments.
"The public sector still has a lot of way to go in creating a safe and regulated environment," Kennedy said.
"In addition to anti-money laundering regulations, there's still lots of other regulatory issues like prudential
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