Other firms are feeling the pinch after a long crypto winter, which saw industry giants cut large numbers of employees in desperate attempts to stay afloat.
Decline in Demand from Private Customers
Maddie Kennedy, director of communications at Chainalysis blockchain research firm Chainalysis said that a round will soon be held to reduce non-core staff. According to ForbesThe sales team will be the primary target of the firing spree. An additional group of employees won’t be fired, but will instead be given new roles and an organizational structure.
Chainalysis claims that the need to layoff employees is due to a significant decline in customers from private sector. They have chosen to be more cautious about cryptocurrency after all the recent events. It is understandable when you consider everything, from plummeting price to exploits galore to business implosions epic proportions.
It is worth noting, however, that Chainalysis has lucrative contracts with investment-oriented companies such as BNY Mellon. However, more than half of Chainalysis’s income, or around 60%, comes from contracts with different regulatory agencies. They include the FBI, DEA and SEC. Their vast research team helps to track down cyber criminals.
Chainalysis Believes That The Downsizing Will Be Temporary
Despite declining revenues, Bloomberg reports that they are still profitable Reports Chainalysis is in the midst of a larger reorganization. The layoff, which is small in comparison to others in the industry in the past year, is only the beginning.
Chainalysis CEO Michael Gronager spoke at the World Economic Forum in Davos this month and hinted at his future plans.
Chainalysis may also consider potential acquisitions of smaller research companies, which could help it consolidate its position. Chainalysis could increase its workforce by approximately 11% before the end of the year, which would bring the total workforce to around 6% more than its pre-layoff workforce.
Bloomberg reported that Chainalysis’ research intensified in the final two months of 2022 because of the collapse of FTX, and subsequent tracking down of the missing funds. Chainalysis is likely to continue its hard work despite bankruptcy cases involving Celsius Voyager, FTX and other creditors not coming to a conclusion.