• Chainalysis is laying off around 44 of its 900 workers, or 4.8% of its staff.
• Kennedy assured investors that Chainalysis is “well capitalized.”

As private sector demand has decreased in tandem with the sell-off in cryptocurrencies for much of the last year. Chainalysis is laying off around 44 of its 900 workers, or 4.8% of its staff.

According to Maddie Kennedy, the company’s senior director of communications, the layoffs will mostly affect members of the “go-to-market team.” A term often used to refer to sales and marketing personnel.

Focusing on Strategy For 2023

Moreover, as per Kennedy, many of the affected employees will be reassigned to other departments or business units inside the corporation. Kennedy assured investors that Chainalysis is “well capitalized” and would continue to employ and grow up teams in accordance with its “refocused strategy” for 2023 despite the news of the day.

The investigation company did not elaborate on the nature of this shift in approach. The company was established in 2014 with the goal of combating money laundering and criminality by keeping tabs on crypto transactions and the individuals responsible for them.

Capital has been pouring into the company at a record rate. In May of 2022, Chainalysis completed a Series F investment round that brought in $170 million, with leadership from GIC, the Singaporean sovereign wealth fund.

Since receiving the money, Chainalysis’s value has increased to a whopping $8.6 billion. Several companies, including Huobi, Coinbase, and Crypto.com, have recently announced large layoffs due to the prolonged crypto winter.

Banks and platforms like BNY Mellon and Robinhood, as well as government agencies like the FBI and the U.S. Securities and Exchange Commission (SEC), are working in tandem with the company.