The blockchain analytics firm Nansen Research confirmed reducing its headcount by 30%. The firm revealed via Twitter that it was cutting off its workforce from areas it considers not essential to its core strategy.
Nansen Rightsizing its Workforce
The firm chief executive Alex Svanevik’s official message via Twitter indicated that Nansen realized rapid growth in its early phase leading it to expand in surface areas that do not constitute a core strategy. With time, it proves prudent to shed off the non-core elements to offer a specialized focus on the primary activities.
Svanevik regretted reaching the tough decision to lay off employees who helped Nansen expand operations. Nonetheless, the research firm would guarantee a soft landing through support and severance affected in the layoff.
Bear Market Affected Nansen Forcing it to Lay-off Employees
The executive cites the difficulty experienced by most tech and crypto firms leaving mass layoffs inevitable in the 2022 last quarter and the onset of 2023. He added that the crypto exchange led to mass layoffs. He confessed that the challenge was not an exclusive issue for the crypto firms as payment companies and operators in the Web3 landscape were drawn to axe employees.
Svanevik outlined in a subsequent tweet that captured the executive’s full statement taking responsibility and apologizing to the victims. He explained the decision as inevitable given the present objective of preventing Nansen from derailing further from its core strategy.
The chief executive detailed that the large layoff announced by Nansen arose from the struggle to recover from the prolonged bear market. He added that the bear market had spread its brutal judgment to crypto markets and research space.
Nansen Delivers Transparent Message Regarding Lay off
Svanevik is optimistic that Nansen’s going concern is unquestionable and will recover from the unfortunate news of axing members who constituted its contingent of skilled employees. He reiterated that Nansen prioritizes building sustainable business models.
The statement cited that Nansen’s future will likely build around its core strategy. In particular, the statement lauded several investors’ input, including GIC and Andreessen Horowitz (a16z), who helped realize $75 million during Series B funding that attracted Tiger Global participation.
The announcement of reducing its headcount by 30% is likely to trigger reconsideration of staff numbers among fellow research and analyst firms. It is uncertain whether the layoff is prompted by the widespread adoption of artificial intelligence and the rollout of the superior ChatGPT4 model.
Nansen Research is among the leading platforms that provide blockchain information using real-time dashboards. Besides, the research firm offers wallet labels and in-depth reports while facilitating address identification.
The revelation of derailing from its core strategy raises questions on reliance on research reports considering the source failed to detect unviability in some of its pursuits. Did Nansen Research misprioritize its business alignment in pursuit of becoming the on-chain intelligence hub for cryptos?
Nansen Decision to Reduce Workforce Receive Positive Reception
The revelation by Svanevik of Nansen Research’s plans to resize its staff triggered a supportive crypto audience citing the firm’s transparency. Arthur Cheong, who helped establish Defiance Capital, expressed support for Nansen. The Web3 investment firm executive lauded the statement for transparent communication.
Other Twitter users echoed Cheong’s sympathy with the Nansen Research. They acknowledged the difficulty of days to announce layoffs. Nevertheless, they admired the transparency exhibited by the chief executive urging it to sustain the building momentum.
Other crypto firms reacted to Svanevik’s announcement indicating they were hiring. In particular, Ava Labs, known for its Avalanche network, revealed it was recruiting.
The sentiments were echoed by Chapter One, which portrays itself as an early-stage funding entity. Also, the NFT protocol FirstMate would announce the availability of vacancies.
Nansen’s chief executive concluded the statement with an optimistic view. He termed the blockchain research firm as a young and learning entity. He restated the eagerness of the company to help build a new financial fabric for the entire world.
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