It seems that one of the big names in cryptocurrency security Chainalysis is desperately looking for ways to improve profit margins as the firm has reduced about twenty percent (20%) of its workforce on Thursday.
Crypto analysis firm Chainalysis recently took the cryptocurrency industry by storm by making it to the Forbes list of Next Billion-Dollar Startups. With this achievement, it changed the perceptions of people working outside this industry, who probably ridiculed the idea of cryptocurrency and blockchain a few years ago. However, this was only a small portion of its long success story. Today, the firm has over one hundred sixty companies, including government entities like Internal Revenue Service, using its revolutionary products.
Since then, the firm has been in the news for all the positive developments. From launching an ingenious risk mitigation software Kryptos, alert notifications for crypto networks to joining forces with Bittrex, and further expanding its services, this blockchain startup was on a promising journey, and least of all, expected job cuts.
Chainalysis cuts jobs to improve profit margins
However, on Thursday, it executed across-the-board cuts in nearly every department, in its bid to improve profit margins and introducing new products to markets. Among all, it was the research and development that faced the maximum brunt. The company revised headcount is now one hundred and fifty-five, after laying off thirty-nine of its employees.
Chainalysis’ director of communications, Maddie Kennedy, confirmed the news by stating the firm is on a renewed path to profitability. The workforce reduction will help the management redistribute its resources, focus on products and rethink its marketing strategy, Kennedy said.
Kennedy went to explain that current market conditions drive early proactive action. The job cuts are a preemptive measure, and a means to hedge against future economic uncertainties.
Meanwhile, the layoffs in Chainalysis, a firm that brings together blockchain and human psychology to curtail crypto crimes, is being considered one of the worst in the industry since the crypto winter 2018. That said, it is far from being the only renowned crypto firm to carry out job cuts this year. In May, cryptocurrency startup Circle let go of thirty of its employees owing to unfavorable market conditions.
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