Chainalysis lays off 15% of staff plans to focus on the public sector.

Crypto analytics firm has announced that Chainalysis lays off around 150 employees, which accounts for approximately 15% of its workforce. The company stated that it plans to shift its focus from the commercial market and concentrate more on government contracting, which it considers a more stable avenue.

Chainalysis CEO Michael Gronager revealed in an internal email to staff that the decision to downsize is driven by the need to adapt to market conditions and reduce expenses. The company believes that by aligning its efforts with the public sector, it can continue to thrive as a top-performing software company. Gronager emphasized building trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses.

Chainalysis Vice President of Communications Madeleine Kennedy, confirmed the Chainalysis lays off and explained that the company remains committed to its long-term mission. Kennedy further stated that while the firm was well-positioned for success, downsizing was necessary to ensure efficient growth.

This isn’t the first time Chainalysis has undergone layoffs. In February of this year, the company let go of approximately 5% of its workforce. According to Forbes, the recent cuts are part of a strategic realignment towards the public sector, which currently contributes to 70% of the company’s revenue.

Chainalysis aims to deepen its collaboration with governments worldwide by focusing on government contracts. Law enforcement agencies have widely utilized the company’s analytics tools and services to track illicit activities in the crypto space.

Chainalysis’s decision to pivot towards the public sector reflects its confidence in government partnerships’ stability and growth potential. As governments increasingly recognize the importance of blockchain technology, Chainalysis aims to position itself as a trusted partner in supporting regulatory compliance and combating financial crimes in the digital asset space.

Despite the layoffs, Chainalysis remains optimistic about its prospects and ability to contribute to the broader adoption and understanding of cryptocurrencies. The company’s commitment to building trust and fostering collaboration with government agencies and financial institutions will likely continue to drive its success in the evolving crypto landscape.