Blockchain analytics platform Nansen has recently announced a significant downsizing, resulting in a 30% reduction in its workforce. CEO Alex Svanevik took to Twitter on May 30 to share the “extremely difficult decision” the company had to make in order to resize the Nansen team.
Svanevik provided two primary reasons behind the layoffs. Firstly, he mentioned the company’s rapid expansion during the bullish phase, which led to the inclusion of areas that were not aligned with Nansen’s core strategy. This scaling was deemed unsustainable in the long run. Secondly, the prolonged bear market in the crypto industry also played a role. Despite attempts to diversify revenue streams through enterprise and institutional clients, Nansen’s cost structure remained high relative to its current standing. Svanevik emphasized the need to focus on building a sustainable business, even though the company still has several years of financial runway.
Severance packages will be provided to the affected employees, as stated by the CEO.
Although the crypto industry has seen its fair share of layoffs, the pace has significantly slowed down in recent months. Coinbase, a prominent cryptocurrency exchange, had announced a 20% reduction in its workforce in January, cutting 950 jobs to reduce operating costs amid the ongoing crypto winter. Additionally, Digital Currency Group (DCG), a crypto venture capital firm, saw its affiliated companies laying off over 500 employees due to market conditions worsened by the FTX collapse.
