Chainalysis, a blockchain analysis company, is laying off a large number of employees! The private company is shifting its focus to government clients due to low demand from private sector.

Facing a bear market in the cryptocurrency industry, blockchain analysis firm Chainalysis announced a layoff of 150 employees. This strategic adjustment is aimed at a stronger focus on government business after withdrawing from the commercial market.

Chainalysis Announces Major Layoffs, Cutting Over 15%

Chainalysis CEO Michael Gronager announced in an email to employees on Monday evening that the company will be laying off over 15% of its workforce of 900 employees. This is the second round of layoffs for the company this year due to the continued decline in cryptocurrency prices.

Business Market Slump Leads to Layoffs in Business Team

According to a report by Forbes, most of the layoffs are from the marketing and business teams of the private company sector. Chainalysis, which assists exchanges and other companies in identifying illicit transactions and maintaining compliant products, is facing difficulties.

Lowered Growth Expectations, Focus on Government Business

Chainalysis has lowered its growth expectations for the year but has stated that it has enough cash flow to weather the current market downturn.

Chainalysis has shifted its focus to the public sector, which accounts for 70% of its revenue. Senior management at Chainalysis stated, "There is still a long way to go in creating a secure and regulated environment in the public sector."