Blockchain analytics platform Nansen has recently made the difficult decision to downsize its workforce by 30%, according to CEO Alex Svanevik, reported first by Cointelegraph.
In a tweet on May 30, Svanevik explained that the company had to undertake this restructuring due to factors such as its rapid expansion and the challenging year faced by the crypto markets.
"This week we announced the extremely difficult decision to reduce the size of the Nansen team," Svanevik said in a tweet.
"I'm endlessly grateful to the incredible people we are parting ways with. They will go on to achieve great things, and we'll ensure they get a soft landing, with severance and support."
An illustration picture taken in London on May 8, 2022, shows gold plated souvenir cryptocurrency Tether (USDT), Bitcoin and Etherium coins arranged beside a screen displaying a trading chart. - Tether (USDT) is an Ethereum token known as a stablecoin that is pegged to the value of the US dollar, and is currently the largest stablecoin with a market value of USD 83 billion dollars.
Why Nansen Reduced Its Workforce
Svanevik highlighted two primary reasons for the reduction in staff. Firstly, Nansen experienced substantial growth in its early years, which led to the inclusion of areas that were not aligned with the company's core strategy. This necessitated a reevaluation of the organization's structure and focus.
Secondly, the CEO acknowledged the impact of the crypto market's volatility on Nansen's operations.
Despite attempting to broaden revenue sources by targeting enterprise and institutional customers, Nansen struggled to align its cost base with its present circumstances. Svanevik emphasized the importance of establishing a sustainable business model and ensuring long-term viability, given the hurdles confronting the crypto industry.
Nansen will provide severance packages to the affected employees, recognizing their contributions to the company. While the crypto industry has witnessed ongoing workforce reductions, the pace of layoffs has slowed in recent months.
Crypto Layoffs
Earlier this year, major cryptocurrency exchange Coinbase announced a 20% reduction in its workforce, reducing operating costs by around 25% to navigate the crypto market conditions.
Moreover, the crypto market downturn and the collapse of FTX had a detrimental effect on companies under the ownership of Digital Currency Group (DCG), a notable crypto venture capital firm. More than 500 employees were let go within these companies, illustrating the challenges experienced by the industry.
The decision to downsize the workforce at Nansen reflects the need for companies to adapt to changing market dynamics and ensure their long-term sustainability.
Nansen provides tools and insights for understanding and analyzing data on various blockchain networks, particularly focusing on Ethereum.
Nansen's platform offers features such as tracking transactions, identifying token holders, and analyzing network activity to assist users in gaining insights into the blockchain ecosystem.
The platform aims to provide valuable information and data-driven intelligence for individuals and businesses operating in the cryptocurrency and blockchain space.
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