Blockchain analytics platform Nansen has announced a 30% reduction in its workforce, citing two key factors for the layoffs. Nansen CEO Alex Svanevik took to Twitter on May 30 to share the difficult decision made to downsize the team.
Svanevik highlighted two primary reasons for the reduction. Firstly, the company experienced a rapid expansion during the bullish market, resulting in taking on areas of operation that were not aligned with Nansen’s core strategy. Secondly, the prolonged bear market in the crypto industry impacted Nansen’s revenue streams, making it necessary to adjust the cost base and prioritize building a sustainable business.
Although the crypto industry has witnessed several instances of mass layoffs, the frequency has decreased in recent months. In January, Genesis Trading cut down approximately 60 positions, reducing the company’s workforce to around 145 employees.
Additionally, earlier this year, companies affiliated with Digital Currency Group (DCG), a leading crypto venture capital firm, laid off over 500 employees due to the bearish market conditions exacerbated by the collapse of FTX.
The crypto industry continues to face challenges and adjustments as companies navigate market fluctuations and work towards establishing sustainable operations.
