Chainalysis has announced that it will reduce its workforce by approximately 150 employees in response to the ongoing crypto winter.
As of Oct. 3, Chainalysis confirmed that it has reduced its workforce by 15%, which will result in 150 employees leaving the company.
“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 Madeleine Kennedy, vice president of communications at Chainalysis.
“We remain committed to our mission to build trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses,” she added.
Chainalysis had around 900 people in its workforce before the recent layoffs, as confirmed to Cointelegraph.
Additionally, Chainalysis decided to cut jobs due to reduced demand for its commercial products caused by the ongoing crypto bear market. This marks the second round of layoffs for the company this year. In February, Chainalysis reduced its workforce by 40-50 people as part of a reorganization in response to worsening market conditions.
The digital asset market capitalization has fallen by 64% since reaching its peak almost two years ago. Markets this year have remained flat, with low levels of volatility, liquidity, and trading volumes.
The price of Bitcoin has struggled to break through the $30,000 resistance level over the past six months.
CEO Michael Gronager informed staff, according to a Forbes report, that the layoffs will primarily affect marketing and business development teams focused on serving the private sector
Many leading crypto and blockchain companies have had to make the difficult decision to lay off staff this year, with only a few avoiding the need to reduce their workforce.
In September, Binance.US laid off a third of its staff, citing tough economic conditions and increased regulatory scrutiny. In the same month, the blockchain firm R3 also announced a reduction of 20% of its workforce.