Blockchain analytics firm Chainalysis made a 15% reduction in its workforce.
The move came in response to market conditions, the company said in a statement provided to PYMNTS Tuesday (Oct. 3).
“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 is necessary to reduce our expenses at this time,” the company said in the statement. “We remain committed to our mission to build trust in blockchains among government agencies, financial institutions and cryptocurrency businesses.”
This is the second round of layoffs the company has made this year. It was reported in February that Chainalysis laid off about 5% of the 900 employees it had at that time. The crypto sector saw over 2,000 jobs lost in the first two months of the year as companies in the digital asset sector continued to retrench.
Companies are looking to cut costs as the industry’s “growth at all costs” mindset changes to concerns about payroll costs that can drag down balance sheets in challenging times, PYMNTS reported in February.
In September, R3, a prominent blockchain company in the finance industry, laid off one-fifth of its workforce. The company eliminated positions across different functions and did so to preserve cash during an industry downturn.
“After careful consideration of the macroeconomic environment and commercial landscape, we’ve decided to make some changes at R3 to ensure we respond where demand is strongest but also to maintain a strong operating and financial position,” R3 said at the time.
In other news from Chainalysis, the company partnered with Four Inc. in August to equip government agencies with the necessary tools to monitor, analyze and combat illicit activities within blockchain networks.
A month earlier, in July, Chainalysis and “Big Four” accounting, consulting and professional service firm Deloitte announced their formation of an alliance to provide digital asset data and analytics solutions and services. The collaboration will allow their shared clients to leverage Chainalysis’ proprietary blockchain dataset and analytics software and Deloitte’s services.
For all PYMNTS crypto coverage, subscribe to the daily Crypto Newsletter.