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Nansen Slashes 30% of Headcount in Bid to Cut Costs
The company said it has multiple years of runway ahead, despite the need to now reduce expenses.
Nansen, a blockchain data analytics platform, announced a 30% reduction in headcount on Tuesday as it looks to cut costs alongside a continuing slump in cryptocurrency markets.
Founded in 2020, the company 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.
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This week we announced the extremely difficult decision to reduce the size of the Nansen team.
— Alex Svanevik 🐧 (@ASvanevik) May 30, 2023
I’m endlessly grateful to the incredible people we are parting ways with. They will go on to achieve great things, and we'll ensure they get a soft landing, with severance and support.
The quick scale-up of employees alongside fast-growing crypto markets in Nansen’s early-going proved ill-advised, said Nansen CEO Alex Svanenik, resulting in too high of a “cost base.”
“We believe we need to make organizational changes to create the right conditions for those who stay with us,” Svanenik added.
Despite the cuts, the company still has several years of runway as it looks to build a sustainable operation, Svanevik said. The company has raised a total of $88.2 million over four funding rounds over the years, led by crypto investment firms such as L1 Digital and Old Fashion Research, Crunchbase data shows.
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