Chainalysis Cut Back on Headcount by 15% as Bear Market Rages On

Blockchain analytic platform Chainalysis has cut back on its headcount by 15%, leaving almost 150 people without jobs. 

The firm cited the current bear market as the push behind the decision, stating that it needed to reduce expenses amidst the harsh market conditions. Like many other crypto firms impacted by the bear market of last year, this is the second bout of layoff that Chainalysis has had to undergo this year. 

Following the last headcount reduction when about 40-50 employees were relieved of their jobs, the company was left with 900 employees, per a statement from a Chainalysis spokesperson. 

Reduced Demand Necessitate Layoff

Markedly, the crypto bear market has impacted negatively on the demand for commercial products. At the same time, the company has assured members of the public that it remains committed to its mission of building trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses.

Chainalysis Vice President of Communications, Madeleine Kennedy said “While Chainalysis continues to be well positioned for long-term success as a consistently top-performing software company, we are very focused on growing efficiently and, due to market conditions, believe it necessary to reduce our expenses at this time.” 

Binance Layoff a Third of Employees 

Similarly, the United States arm of leading cryptocurrency exchange Binance had to make the hard decision of laying off a third of its workforce in September.

This was around the same time when the Chief Executive Officer (CEO) of Binance U.S Brian Shroder left the firm. Meanwhile, the digital asset service provider had equally cut down on its employees at the beginning of the second half of the year.

Ironically, Changpeng Zhao, the CEO of Binance hinted at plans to increase the firm’s workforce by 30%. However, it seems the Securities and Exchange Commission’s (SEC) enforcement action on the crypto exchange has caused the firm to stop in its tracks. 

Crypto Market Sees Unfavorable Conditions 

Generally, the crypto ecosystem has not been performing significantly well. The total crypto market capitalization is down by 64% from its peak level from two years ago. Many coins including Bitcoin (BTC) are not performing optimally with the broad market suffering from volatility, liquidity and fluctuating trading volumes.

These headcount reductions are likely to continue if stability is not restored to the market in good time.