30% of Nansen’s workforce laid off

The blockchain analytics platform Nansen has announced a reduction in its workforce by 30%. On May 30, Nansen CEO Alex Svanevik revealed on Twitter that the company had to make an “extremely difficult decision to reduce the size of the Nansen team.”

Full statement: pic.twitter.com/cxSTtZBiZU

— Alex Svanevik (@ASvanevik) May 30, 2023

Svanevik cited two major reasons for the reduction in Nansen’s workforce. The first was the company’s rapid scaling during its early years of operation, which “led the organization to taking on surface area that’s not truly part of Nansen’s core strategy.”

Svanevik also cited the brutal year for crypto markets as the second reason for the layoffs. Despite efforts to diversify revenue streams through enterprise and institutional customers, Nansen’s cost base remained relatively high compared to the company’s current position. He added that although the company has “several years of runway,” its “priority is to build a sustainable business.”

The CEO stated that laid-off employees would be entitled to severance packages.

Related: Crypto layoffs decelerate, with layoffs falling to 570 in February

Mass layoffs continue to plague the crypto industry, though they have slowed significantly in recent months. In January, cryptocurrency exchange blockchain announced a workforce reduction of 20%. The decision to cut 950 jobs was attributed to blockchain’s efforts to decrease operating costs by approximately 25% amid the ongoing crypto winter.

At the beginning of the year, companies owned by Digital Currency Group (DCG), a crypto venture capital firm, also laid off over 500 employees due to bearish market conditions exacerbated by the collapse of FTX.

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