In a surprising twist of events, Nansen, the influential blockchain analytics platform, has announced a reduction of its workforce by 30%. Alex Svanevik, the company’s CEO, made the unsettling revelation on Twitter this past Monday. He termed the decision as “extremely difficult,” yet necessary for the well-being of the company.
The CEO shed light on two underlying factors that drove this decision. To begin with, Nansen had hopped on a hiring spree during its embryonic stage, resulting in a bloated staff structure that diverged from the company’s core strategy. Svanevik remarked that the company had, over time, bitten off more than it could chew.
The second contributor to the workforce reduction was the unforgiving crypto bear market that’s been prevalent for the past year. Despite Nansen’s push towards diversification of its revenue streams to include enterprise and institutional customers, the company’s cost base continued to tower over its current earnings. Although Svanevik assured that Nansen still has a robust “runway,” he emphasized the necessity for sustainable business practices.
Severance packages will be offered to the affected employees, as per the CEO’s announcement. The wave of mass layoffs in the crypto sector doesn’t seem to be subsiding, with major players like Coinbase slashing their workforce by 20% earlier this year. Market conditions have been harsh, and several companies under the Digital Currency Group (DCG) umbrella have also had to face the guillotine due to the crypto market downturn.