Blockchain analytics platform Nansen announced a 30% layoff. 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."
Svanevik gave two main reasons for Nansen's layoffs. The first was the company's rapid scaling up in its first few years of operation, which "caused the organization to take on surface areas that weren't really part of Nansen's core strategy." Svanevik also cited a brutal year for the crypto market as the second reason for the layoffs. Despite efforts to diversify revenue streams through corporate and institutional clients, Nansen's cost base remains relatively high compared to the company's current position. He added that while the The company had "many years" of runway", its "priority is to build a sustainable business".
The fired employees will be entitled to severity pay, the chief executive said. Mass layoffs continue to plague the crypto industry, although the pace of layoffs has slowed significantly in recent months. In January, cryptocurrency exchange Coinbase announced ed a 20% layoff. The decision to cut 950 jobs was attributed to Coinbase's efforts to reduce operating costs by about 25% amid the ongoing crypto winter. Earlier this year, companies owned by crypto venture capital firm Digital Currency Group (DCG) also laid off more than 500 employees as the FTX crash exacerbated bear market conditions.
