Alex Svanevik, CEO of blockchain data platform Nansen, tweeted that Nansen has decided to lay off 30% of its workforce.
This decision was made because the company was expanding too quickly and entering areas that were not part of the company’s core strategy. The cost base is currently too high compared to the company’s profits.
Founded in 2020, the company employed between 51 and 200 employees before the cuts, LinkedIn data shows.
That manpower allows the company to analyze more than 100 million wallets on blockchains like Polygon and Ethereum for its clients.
Their clients include media publications like Bloomberg and The Block and crypto-focused funds, including Polychain.
“We believe that organizational changes need to be made to create the right conditions for those who stay,” added Svanenik.
Despite the cuts, the company still has several years left to build a sustainable operation, Svanevik said.
The company has raised a total of $88.2 million across four funding rounds over the years.