Chainalysis Announces Workforce Reduction of 150 Employees

Chainalysis, estimated to be worth $8.6 billion in 2022, is undergoing a second round of reductions due to declining commercial demand.

The company plans to lay off approximately 150 workers, or more than 15% of its 900-person workforce.

Vice President of Communications Madeleine Kennedy stated, “This reorganization reflects our ongoing strategic shifts to balance our growth aspirations. We are going to focus on profitability and maturity and to ensure that we are agile in light of evolving market forces.”

Most of Chainalysis’s reductions are anticipated to affect the private sector-focused marketing and business development teams.

These roles have faced increasing difficulties, specifically in light of the 60% decline in the price of Bitcoin since its all-time high in November 2021.

This market retreat has led to a decline in trading revenue and blockchain activity, decreasing demand for Chainalysis products that assist cryptocurrency exchanges in identifying illicit transactions and maintaining regulatory compliance.

Despite initial projections of a 50% increase between mid-2022 and mid-2023, the company must now revise its outlook for the remainder of the year.

Chainalysis is, however, financially stable enough to withstand the current bearish market.