May 31, 2023 05:05
Nansen, a
blockchain analytics platform, has announced a significant restructuring plan,
which includes reducing its staff by 30%. The company's Chief Executive Officer
(CEO), Alex Svanevik, revealed the news in a memo shared via social media,
expressing regret at the necessity of these changes.
Nansen to Reduce Its
Workforce by 30%
The
rationale behind Nansen's decision, as explained by the CEO, is twofold. First,
the company aggressively scaled its team during its early years to capitalize
on rapid growth and market opportunities. This expansion resulted in the
company branching out into areas that strayed from its core strategy. The CEO
took full responsibility for this, assuring stakeholders that the restructured
organization would refocus on its key competencies, aiming to do fewer things
but with increased efficiency and excellence.
The second
contributing factor to the downsizing has been a challenging year for the crypto
markets, a sector in which Nansen operates. While the firm has managed to
diversify its revenue streams by attracting enterprise and institutional
customers, the cost base remained high compared to the company's current
standing. The CEO was quick to assure that Nansen still had several years of
runway but stressed the need to build a sustainable business.
"A
reduction of 30% of our team is significant. But we believe we need to make
organizational changes to create the right conditions for those who stay with
us. It may not seem like it today, but we are still committed to building the
best workplace in crypto," Svanevik commented.
This week we announced the extremely difficult decision to reduce the size of the Nansen team.I’m endlessly grateful to the incredible people we are parting ways with. They will go on to achieve great things, and we'll ensure they get a soft landing, with severance and support.
— Alex Svanevik ?? (@ASvanevik)
May 30, 2023Estimating
that Nansen employs around 200 people, a one-third workforce reduction will
likely mean that approximately 60-70 individuals will bid farewell to the team.
According
to Svanevik, the objective is to focus on core operations, enabling a leaner
Nansen team to concentrate on developing products for its customers.
The CEO's
memo ended optimistically, underscoring Nansen's commitment to building the
best workplace in the crypto space, despite the current challenges. Svanevik
emphasized the company's ongoing dedication to transparency and called for
patience and compassion as they navigate these difficult times.
"We'll
face challenges along the way, but we're here to help build a new financial
fabric for the world," Nansen's CEO concluded.
Widespread Cuts in Blockchain
Industry
Although
the workforce reduction in Nansen might seem deep, it is not definitely a lone
case. During 2022 and at the beginning of 2023 many crypto and digital assets
companies announced similar moves to fight the 'crypto winter', a long-term
period of lower prices and yields.
Four months
ago, Luno, the digital assets exchange based in London, announced a massive
workforce reduction. Luno decided to lay off 35% of its current staff,
translating to more than 300 professionals in all regions of its operations.
A few days
earlier, Gemini, the cryptocurrency platform owned by the Winklevoss twin
brothers, made an announcement about a 10% reduction in employment. It was the third job
cut in the last 12 months. Meanwhile, ConsenSys, a cryptocurrency software
company, has confirmed its plans to cut 11% of its current workforce, which
translated to almost 100 positions.
At the beginning
of 2023, Coinbase announced one of the biggest reduction plans for 950 positions (20% of its workforce). A cessation of the operations in Japan was another
part of the current headcount reduction and cost-effective cuts.
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
