Nansen, a blockchain analytics platform, recently announced the trimming of its entire workforce by 30%. On 30th May, Alex Svanevik, the CEO of the platform, went on to disclose on Twitter that the company had to bring about an extremely difficult decision to reduce the size of the entire Nansen team. Svanevik also provided two big reasons behind the reduction in the workforce of the company. The first was the rapid scaling by the company during its initial years of operation, which had led the organization to take on the surface area- which was not a part of the core strategy of the platform.
Nansen Has Plans To Laying Off A Lot Of Its Staff
Nansen’s CEO also talked about a brutal year in the crypto markets as another reason for this layoff. Despite multiple efforts to diversify the streams of revenue through institutional customers and enterprise, the cost base of this company remained quite high, when compared to the current position of the company. He also added that while the company had quite a few years of runway, the main priority was to create a sustainable business. The CEO stated that the laid-off employees would be entitled to some form of severance package.
Mass layoffs have been a big problem for a large section of the crypto industry, which also encompasses Nansen, although they have slowed down significantly over the last couple of months. In January, Coinbase, the cryptocurrency exchange announced a reduction in their workforce by 20%. The decision to cut down on 950 jobs was attributed to the efforts made by Coinbase to decrease the costs of operation by around 25%.
