Blockchain analytics platform Nansen has revealed plans to reduce its workforce by 30%. The development comes as the company aims to streamline operations and minimize costs amidst a prolonged downturn in the cryptocurrency markets.
On May 30, Nansen CEO Alex Svanevik took to Twitter to announce the decision, stating that the company had to downsize its team.
Svanevik outlined two primary factors behind the move: Nansen’s rapid expansion during its initial years, which resulted in the organization taking on responsibilities outside its core strategy, and the challenging year faced by the crypto markets.
Despite diversification efforts targeting enterprise and institutional clients, Nansen’s cost structure remained relatively high compared to its current position. Svanevik emphasized the need to build a sustainable business, even though the company had several years of financial runway ahead.
Founded in 2020, Nansen had a workforce ranging from 51 to 200 employees before the downsizing, according to LinkedIn data. The company’s manpower facilitated its analysis of over 100 million wallets across various blockchains, including Polygon and Ethereum (ETH).
Nansen served esteemed clients such as media publications Bloomberg and The Block and crypto-centric funds like Polychain.
Svanevik assured that the affected employees would receive severance packages.
Layoffs continue to plague crypto firms
While the workforce reduction at Nansen may appear substantial, it is not an isolated occurrence. In the past year, numerous cryptocurrency and digital asset companies have implemented similar measures to combat the effects of the “crypto winter,” a protracted period of lower prices and reduced returns.
Luno, a London-based digital assets exchange, made headlines four months ago with a substantial workforce reduction, cutting 35% of its staff, or over 300 professionals, across all regions of operation.
Gemini, the cryptocurrency platform owned by the Winklevoss twin brothers, announced a 10% reduction in employment, marking their third round of job cuts in the past year.
ConsenSys, a cryptocurrency software company, confirmed plans to reduce its workforce by 11%, affecting nearly 100 positions.
At the start of 2023, crypto exchange Coinbase unveiled one of the most significant downsizing initiatives in the industry, targeting a reduction of 950 positions, equivalent to 20% of its workforce. Additionally, Coinbase ceased operations in Japan as part of its efforts to streamline processes and cut costs.
The workforce reductions across prominent crypto and digital asset companies underscore the challenging market conditions and the industry’s need to adapt to ensure long-term sustainability.