Nansen Cuts 30% Of Staff Due To Difficult Market Context

Key Points:

• Alex Svanevik, CEO of the blockchain data platform Nansen, announced a 30% reduction in his company’s employment.
• He added that his company has expanded outside its original area of concentration, which, along with the impacts of the “crypto winter,” is the key reason for the decision.
• Notwithstanding the reductions, the corporation still has many years to create a viable operation.

On Tuesday, Nansen, a blockchain data analytics platform, reported a 30% decrease in employment as it seeks to reduce expenses amid the ongoing fall in cryptocurrency markets.

Alex Svanevik, CEO of the blockchain data platform Nansen, stated on Twitter on Tuesday that his business had made the “extremely difficult decision” to decrease the number of its workforce. According to the article, around 30% of the firm’s employees would be laid off.

According to LinkedIn statistics, the firm, which was founded in 2020, employed between 51 and 200 people prior to the layoffs. This personnel enabled the business to evaluate more than 100 million wallets across blockchains such as Polygon and Ethereum for its customers, which included media outlets like Bloomberg and The Block, as well as crypto-centric funds such as Polychain.

But the end has arrived, and it is now time for Nansen to slash operating expenses as well, with one out of every three workers being forced to hunt for new employment. Other consequences of a bear market that, although it seems to have ended in terms of pricing, is still reaping victims at the upper echelons of the crypto-sphere.

The two primary reasons for the decision, according to Svanevik, are the fact that Nansen has expanded beyond its original scope and the consequences of the “crypto winter,” which adversely harmed the whole digital assets business during 2022.

The first is an expansion and growth of the group’s operations, while rivals have already opted to curtail significantly. The CEO said that the business would revert to the fundamental operations that distinguished Nansen’s inception.

He adds a few additional words to the second reason:

“Although we’ve seen diversification of revenues via enterprise and institutional customers in the last year, our cost base is too high relative to where the company is today. We do have several years of runway, but our priority is to build a sustainable business.”

“We believe we need to make organizational changes to create the right conditions for those who stay with us,” Svanenik continued.

Svanevik further claimed that he accepts full responsibility for the errors committed but that Nansen is still a young and learning organization. He also emphasized his company’s goal to build “the best workplace in crypto.”

Despite the changes, Svanevik believes the firm still has many years to create a viable operation. Nansen is far from the first digital asset company that has had to decrease its employment due to the “crypto winter.” The first significant wave of layoffs in the crypto industry occurred in January 2023.

Genesis, a subsidiary of the Digital Currency Group, revealed at the start of the year that it is decreasing its personnel by 30% due to the FTX contagion. Just a few days later, the biggest publicly listed cryptocurrency exchange, Coinbase, announced a similar layoff of up to 900 workers.

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Harold

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