Blockchain forensics firm Chainalysis is implementing a 5% job cut, mainly in the sales team, media reports informed on Friday. The chief reason for going for the job cuts is the sharp decline in demand from the private sector over the past year of crypto winter.
Chainalysis which counts Singapore’s sovereign wealth fund GIC as one of the investors has about 900 staff and the latest lay-off will impact 44. The organization is planning to reorganize its business with a focus on clients in the finance and public sectors, Bloomberg said attributing the information to an unnamed Chainalysis spokesperson. The company is well capitalized, the spokesperson added.
Chainalysis has an extensive list of clients among regulators and law enforcement agencies. For example, the United States Federal Bureau of Investigation (FBI), SEC, and Drug Enforcement Administration are among Chainalysis clients. Similarly, large private companies such as Robinhood and BNY Mellon subscribe to Chainalysis’s services. However, the public sector accounts for up to 60% of its overall clients.
In terms of the number of people, Chainalysis has laid off a small part of its workforce compared to other large crypto organizations that have laid off people by hundreds and thousands. As per media reports, the cryptocurrency sector has seen over 27,000 jobs eliminated since April 2022.
