Key takeaways:
- ConsenSys confirmed earlier rumors by announcing that 11% of their workforce was being laid off.
- The business will now be centred on its “key value drivers,” according to founder Joseph Lubin.
The most recent cryptocurrency startup to reduce its headcount is ConsenSys, an Ethereum-focused software company renowned for its flagship MetaMask wallet. In a blog post on Wednesday, the company’s founder Joseph Lubin announced the layoffs of 97 employees, or 11% of the workforce.
The highly tough choice to condense parts of ConsenSys’ teams must be made now in order to respond to the hard and unpredictably changing market conditions, according to Lubin. 11% of ConsenSys’ total workforce, or 97 individuals, will be impacted by this decision.
The current crypto bear cycle, according to Lubin, happens to correspond with a very tough macroeconomic climate fueled by increasing inflation, sluggish economic growth, and growing geopolitical turmoil.
The crypto market lost about $2 trillion in value in 2017 as a result of rising interest rates and intensifying concerns about an impending crisis. layoff announcements have now become the new normal now. Even well-known and credible firms like Coinbase and Genesis gave up in the face of the current industry downturn.
According to Lubin, the layoffs were made to support staff members whose responsibilities had decreased as a result of the industry slump rather than any product workers.
In addition, the founder claimed that the recent failure of centralised financing systems in the cryptocurrency industry had increased distrust and withdrawal.
Lubin claims that several of these companies, particularly insolvent ones like Voyager and Celsius, chased profits recklessly, frequently at the expense of their clients.
Without CeFi’s antics, the slump would have occurred anyhow, but CeFi’s antics greatly accelerated it. It was difficult to determine if they were intentionally abusing clients or or acting foolishly, according to Lubin.
Lubin emphasised ConsenSys’ financial stability by adding that the painful decision to streamline would direct the company’s strategy around its core products and the investigation of fresh possibilities in Web3 commerce as it matures into the mainstream.
