Chainalysis cited difficult market conditions and axed another 15% of workers

Blockchain analytics firm Chainalysis cut its headcount by another 15% this week, citing the need to cut costs due to bear market blues.

On October 3, Chainalysis confirmed to Cointelegraph that it has made the difficult decision to lay off approximately 135 employees, 15% of the workforce.

“While Chinalysis continues to be well-positioned for long-term success as a consistently high-performing software company, we believe it is necessary to reduce our costs at this time due to our growing efficiency and market conditions,” he said. Madeleine Kennedy, Vice President of Communications.

We remain committed to our mission to build trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses,” she added.

A Chinalysis spokeswoman confirmed the company had about 900 employees before the latest cuts.

It is the second round of cuts this year for the company as the ongoing crypto bear market has reduced demand for trading products. In February, Chinalysis cut 40-50 jobs as part of a reorganization in response to worsening market conditions.

The digital asset's market capitalization is down 64 percent from its peak two years ago. This year, markets have remained flat with declining volatility, liquidity and trading volume. Moreover, Bitcoin has repeatedly failed to breach resistance above $30,000 and has remained range-bound for the past six months.

The Forbes report cites an email from CEO Michael Groninger to employees, suggesting that the cuts will come primarily from the private sector's marketing and business development groups.

A spokesperson for Chainalysis confirmed that the information in the report was accurate.

Related: Petition hopes to stop US government agencies from using Chinalysis forensics

Very few leading crypto and blockchain companies have escaped the ax this year.

In September, Binance.US let a third of its staff go as regulatory pressure intensified. Last month, venture-backed blockchain company R3 ax saw a fifth of its workforce.

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