The firm noted that the firm has been experiencing a decrease in demand for Chainalysis’ products as trade revenue took a downturn and reduced activity on the blockchain.
Chainalysis, a blockchain analytics firm, has announced a 15% cut of its workforce. This is the second round of lay off this year after laying off 5% of its workforce in February.
Chainalysis cut staff
In an internal memo to staff on Monday, Chainalysis’ CEO Michael Gronager said that the firm was retreating from the commercial market and focusing on government contracting.
The firm noted that the firm has been experiencing a decrease in demand for Chainalysis’ products as trade revenue took a downturn and reduced activity on the blockchain.
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“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 necessary to reduce our expenses at this time. We remain committed to our mission to build trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses,” the company said in a statement.
The firm has maintained that it still striving to build the perfect product for the crypto market.
The prolonged cryptocurrency bear market has decreased the demand for commercial products, resulting in the company’s second wave of layoffs this year. In response to the deteriorating market conditions, Chainaly also downsized in February and cutting 40 to 50 staff.
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