Alex Svanevik, the CEO and co-founder of the blockchain analytics platform Nansen, announced today that the company is reducing its workforce by 30%.
Nansen Downsizes Head Count by 30%
In the announcement, Svanevik cited two reasons for its latest employee reduction. In his first reason, he referenced a cohort of services and investments the company took up at a time “when others needed to scale back.” This growth led to the creation of subsidiaries that were not part of the firm’s core strategy.
Svanevik noted that the remaining workers will “do fewer things, but do them extremely well.”
Nansen’s CEO highlighted the bear market that enveloped the crypto market in the past year as the second reason for the staff reduction.
“Although we’ve seen diversification of revenues via enterprise and institutional customers in the last year, our cost base is too high relative to where the company is today. We do have several years of runway, but our priority is to build a sustainable business,” Svanevik wrote.
The Nansen co-founder noted that affected employees will “get a soft landing” through severance packages and support while they secure new jobs. Svanevik believes that downsizing the platform’s headcount will help improve the services offered within the community.
Crypto Firms Reduce Workforce
Several crypto firms have recently downsized their workforce as part of ways to combat the crypto winter. In February, Polygon Labs, the company behind the Ethereum sidechain Polygon, laid off 20% of its employees to keep its business stable.
CryptoCom, a crypto exchange, conducted two rounds of layoffs within a limited interval. The first batch saw 260 workers losing their jobs in the company. The second round of layoffs featured 20% of the exchange’s headcount. The company cited the economic conditions of the market and other unforeseeable events.
Publicly-traded crypto exchange Coinbase also downsized its workforce by 20%, representing 950 employees, to maintain its operational expenses.
