By
Tolu Ajiboye
April 16th, 2024
Nansen has promised to work assiduously with its remaining team to ensure they provide the best services to their customers as well as build the best workplace in crypto.
Nansen, a leading startup in the blockchain technology industry, has recently announced a significant reduction in its workforce. The news of the 30% cut in blockchain data analytics firms has caused quite a stir in the industry, with many speculating on the reasons behind the decision.
According to the blockchain analytics platform’s Chief Executive Officer (CEO), Alex Svanevik in a tweet, several factors beyond the firm’s control necessitated the reduction in its workforce. He also disclosed that it was an extremely difficult situation for the company to cut short the size of its team.
Nansen to Now Concentrate on Core Services
Alex cited two major reasons for the reduction in Nansen’s workforce. First, the company has recognized the need to streamline its operations and concentrate on its key strengths in order to remain competitive in an increasingly dynamic industry.
Likewise, the CEO mentioned that this past year has been brutal for the crypto markets, hence the need for layoffs. The company has done everything possible to diversify its revenue streams through its institutional customers, yet its cost base has remained high compared to the company’s current state. Also, Nansen has been experiencing a decrease in demand for its product and services, which has resulted in a decline in revenue.
Furthermore, the decision to reduce its workforce was not made lightly, with management acknowledging the impact this will have on affected employees. However, the company believes that this is the right decision to ensure its long-term sustainability and viability. Interestingly, Alex noted that the employees affected by the workforce reduction will be offered severance packages and career transition assistance to help them navigate this difficult period.
Going forward, the company has promised to work assiduously with its remaining team to ensure they provide the best services to their customers as well as build the best workplace in crypto.
Beyond Nansen: Other Crypto Firms Forced to Reduce Workforce
As the bear market continues to sweep the crypto industry, mass layoffs have continued to plague the firms operating in the space even though the rate has slowed significantly in recent months. In January, popular cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) announced a 20% staff layoff to strengthen its financial position in the face of the crypto crunch. Although, this happens to be the second major round of staff downsizing for the exchange in the past year.
Also, Luno, a leading global cryptocurrency company announced that it would be shedding 35% of its global employees.
Outside of the blockchain and crypto industry, the American multinational tech giant Meta Platforms Inc (NASDAQ: META) also embarked on a series of layoffs beginning in November last year, when the tech giant axed 11,000 of its workforce. All of these reductions were necessary to help the firm cut costs and focus on its restructuring.