On May 30th, Alex Svanevik, the CEO of the blockchain data platform Nansen, announced that his company is reducing its workforce by 30%. Svanvik stated that the fact that his firm has grown beyond its primary field of focus, combined with the effects of the “crypto winter” is the main reason for the decision.
Nansen to Reduce Workforce by a Third
This Tuesday, the chief executive officer of the blockchain data platform Nansen, Alex Svanevik, announced on Twitter that his company has reached the “extremely difficult decision” to reduce the size of its team. According to the post, about 30% of the firm’s workers will are to be fired.
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, 2023
According to Svanevik, the two main reasons behind the decision are the combined facts that Nansen has grown beyond its intended scope and the effects of the “crypto winter” that severely impacted the entire digital assets industry throughout 2022.
Svanevik also stated he is taking full responsibility for the mistakes that were made, but highlighted that Nansen is still a “young and learning” organization. He also reaffirmed his firm’s commitment to “building the best workplace in crypto”.
The Lingering Damage From the “Crypto Winter”.
Nansen is far from the only digital assets firm that has been forced to reduce the size of its workforce due to the effects of the “crypto winter”. The first large wave of layoffs in the cryptocurrency industry came already in January 2023.
At the very start of the year, the Digital Currency Group’s subsidiary Genesis, severy affected by the FTX contagion, announced it is reducing its workforce by 30%. Only days later, the largest publicly-traded cryptocurrency exchange Coinbase similarly announced it is firing up to 900 employees.
The “crypto winter” has also had other severe effects on the digital assets industry as it triggered the collapse of multiple major cryptocurrency companies starting with the LUNA collapse in May 2022. It also saw a major decline in the market cap of the sector and a cooling of general interest in digital assets.
Do you think the cryptocurrency industry will shake off the damage from the “crypto winter” before the end of 2023? Let us know in the comments below.
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