Chainalysis, a blockchain research firm, has announced plans for a round of layoffs targeting non-core personnel, primarily from the sales team. This is due to a massive decline in customers from the private sector, who have become more cautious about cryptocurrencies. Despite this, Chainalysis still has lucrative contracts with investment-oriented firms and regulatory entities, accounting for around 60% of their income.
The layoff is just the first step in a greater reorganization process that Chainalysis is undergoing, with plans for potential acquisitions of unnamed firms and a hiring spree. CEO Michael Gronager hinted at these plans at the World Economic Forum in Davos earlier this month. The intensity of Chainalysis’ research has strengthened in the last two months of 2022 due to the collapse of FTX and the subsequent tracking down of missing funds.
Overall, the reorganization of Chainalysis is a reflection of the crypto winter that has been ongoing for the past year. With the bankruptcy cases of Celsius, Voyager, FTX, and others still unresolved, Chainalysis will continue to have its work cut out. Despite the layoffs, the company hopes to increase its workforce by 11% by the end of the year, bringing the total manpower to 6% higher than pre-layoff levels.