Nansen had grown dramatically in the pandemic and then encountered a crypto winter

Due to the ongoing crypto winter, Nansen, a blockchain analytics platform, has announced to reduce its staff by 30%. The company's Chief Executive Officer (CEO), Alex Svanevik, revealed the news in a memo shared via social media, expressing regret at the necessity of these changes.

This year has seen a large number of layoffs, across the entire crypto space, with exchanges leading the way. These platforms haven't been the only affected, however, with job cuts happening at payment companies and across the Web3 landscape. Although the company recently diversified its revenues to mitigate potential risks, Alex noted that the costs associated with its current operating scale were still too high.

Founded in 2020, the blockchain analytics firm employed somewhere between 51 and 200 employees before the reductions, LinkedIn data shows. That manpower allowed the company to analyze more than 100 million wallets across blockchains like Polygon and Ethereum for its clients such as media publications like Bloomberg and The Block and crypto-centric funds, including Polychain.

Alex gave two primary reasons for the crypto firm reducing its staff. First of all, he claimed that the business expanded too quickly in its early years of operation. Second, he claimed that the cryptocurrency markets have had a "brutal" year since 2022. Alex said that the firm's "cost base is too high relative to where the company is today."

According to Alex, Nansen has "several years of runway," but only if it can become sustainable. He explained that achieving sustainability entails "reducing our surface area" to a smaller Nansen crew.