• Blockchain analytics platform Nansen has announced plans to reduce its workforce by 30%.
• The decision comes as the company aims to streamline operations and minimize costs in a prolonged downturn of cryptocurrency markets.
• Affected employees will receive severance packages.
Nansen Slashes Workforce by 30%
Blockchain analytics platform Nansen has revealed plans to reduce its workforce by 30%. The move is intended to streamline operations and minimize costs amidst a prolonged downturn in the cryptocurrency markets. On May 30, Nansen CEO Alex Svanevik took to Twitter to announce the decision.
Reasons Behind the Move
The primary reasons for this move are attributed to Nansen’s rapid expansion during its initial years, resulting in taking on responsibilities outside of its core strategy, and the challenging year faced by the crypto markets which left their cost structure relatively high compared to their current position.
Before this development, Nansen had a workforce ranging from 51-200 employees according to LinkedIn data. These employees facilitated analysis of over 100 million wallets across various blockchains including Polygon and Ethereum (ETH). Affected employees will receive severance packages as assured by Svanevik himself.
Crypto Winter Impacts
This move is not an isolated occurrence as numerous cryptocurrency and digital asset companies have implemented similar measures in light of what has been referred to as “the crypto winter” – a prolonged period of lower prices and reduced returns. An example of this is Luno, a London based digital assets exchange that cut 35% of its staff across all regions of operation four months ago.
Sustainable Business Model
Despite diversification efforts targeting enterprise and institutional clients, it was still necessary for Nansen to build a sustainable business model despite having several years’ worth of financial runway ahead – leading them ultimately make this difficult decision.