The Singaporean company Nansen, an expert in blockchain data analysis, recently announced a layoff plan involving 30% of its workforce. In question, difficulties related to the bear market associated with the too rapid growth of the company since its creation in 2019. However, for the past 18 months, staff reorganizations have been rather common in the Web3 industry. We take stock of the situation.
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Nansen lays off 30% of its employees
Despite the growth of Bitcoin (BTC) since the beginning of the year, the bear market has not said its last word. As proof, the Nansen company specializing in the analysis of blockchain data is parting with a substantial part of its workforce.
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 sharing 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
” This week we announced the extremely difficult decision to reduce the size of our team. I am infinitely grateful to the incredible people we are parting with. They will continue to do great things, and we will make sure they can bounce back smoothly, with severance and support. »
Through a document shared on Twitter, its CEO Alex Svanevik talks about the reasons for this restructuring impacting 30% of its employees. In his words, this reconfiguration is necessary for the company’s long-term survival.
The main reason given is the fall in cryptocurrency prices since 2021as well as the multiple events and bankruptcies in the sector that marked the year 2022.
Since its creation in 2019, the company has experienced exponential growth. In just a few years, it has convinced Web3 professionals and investors with over $88 million raised between October 2020 and December 2021.
However, this growth comes at a price. : with the bear market, the company is experiencing difficulties in increasing its profits because its human resources currently involve too high costs.
So, with these layoffs, Nansen seeks to refocus its business around its key products and services to ensure the company’s longevity for years to come.
👉 Also in the news – Bitcoin (BTC): First month in the red since December 2022
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The impact of the bear market on companies Web3
In the current context of a bear market, marked with a red iron by the bankruptcies of FTX and Terraform Labs to name but a few, Nansen’s layoffs are more the rule than the exception : many Web3 companies have resorted to a reorganization of their workforce.
Several thousand employees were affected by these measures: at Coinbase alone, these are more than 2000 people who were fired between June 2022 and January 2023.
At the same time, big names in the industry such as the Kraken, Huobi and Crypto.com exchanges, the NFT marketplace OpenSea, as well as Polygon Labs (at the origin of the blockchain of the same name) have all separated from at least 20% of their workforce.
Likewise, these figures do not take into account the multiple companies that have closed their doors and whose collapse has impacted their teams: Genesis, Silvergate, BlockFi, not to mention the fraudulent companies formerly led by Sam Bankman-Fried and Do Kwon.. . If no viable solution emerges for their survival, they will also have to separate from all of their workforce..
However, not all players feel the difficulties of the bear market in the same way: some companies continue to recruit new talentlike Ledger and Binance which have dozens of open positions in order to continue their growth and prepare for the next bull cycle.
👉 Bear market and massive layoffs: how is the cryptocurrency industry doing?
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Source: Nansen CEO
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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