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Blockchain security company Chainalysis has reportedly axed 39 of its employees in an attempt to churn out more profit. The downsizing is about 20% of the company’s workforce, with every division of the firm taking a hit, CoinDesk reported.
However, Chainalysis Director of Communications Maddie Kennedy said that the research and development team took most of the damage. Replacing these employees will be a product team that will oversee the marketing of the company’s security products.
This is the largest downsizing since the crypto winter hit the crypto economy in 2018 that saw Bitcoin’s price plummeting down to the $3,000 level. Aside from profitability, Kennedy also said that the layoff is the company’s attempt in shielding itself from unforeseen economic volatility.
A preemptive maneuver
“Market conditions necessitated early action … The layoffs are a preemptive measure, meant to stave off the unexpected, including the possibility of an economic downturn … We think that acting now is best for the long-term health of the business,” Kennedy said.
The layoff comes one week after Chainalysis added three new executive members to its fold. Jason Bonds was appointed as the Chief Revenue Officer, Chris Manouse as Vice President of Public Sector, and Debra Brows as Vice President of Americas, Hedgeweek reported.
Hints about the downsizing
Although the downsizing came as a bit of a surprise since the company saw waves of positivity in recent months, there were hints prior to its occurrence. Among them came from CEO and Co-founder of Chainalysis Michael Gronager who underscored the importance of bringing their products to market.
“Chainalysis data provides transparency into blockchain transactions, and investing in our Sales and Customer Success teams is vital to bringing these insights to market. Our three new business development executives each bring a wealth of sales and growth strategy experience to Chainalysis, which is critical as we continue to grow across sectors on a global level,” Gronager said.
Meanwhile, the company is currently on track to build Kryptos, a software that aims to provide useful data to potential crypto investors and help them mitigate the risks if they decide to enter the market. Kryptos’ beta is already live and the product will be launching in early 2020.
