ConsenSys to Reduce Workforce by 20%
In a blog post, Consensys CEO Joseph Lubin announced that the blockchain software company would be laying off 20% of its employees, affecting around 162 of its 828 employees. The decision, Lubin described as "hard," is motivated by various factors, with long-term financial sustainability being one of them.
Lubin highlighted the complexities of navigating the evolving crypto space due to the lack of clear regulatory frameworks. He noted ongoing battles between crypto firms and the Securities and Exchange Commission, including his own.
The layoffs are part of an effort to reshape Consensys for competitiveness in a fast-growing space. The company aims to evolve from "a company into a network state over time," driving "progressively toward rigorous decentralization."
Consensys, which is best known for its self-custodial MetaMask crypto wallet, seeks to capitalize on the "broad and deep capabilities" it has built over its 10-year lifespan. The company aims to become a "smaller, much more agile organization."
In order to support affected employees, Consensys has outlined a comprehensive severance package. This includes severance based on tenure, job placement support, extended healthcare benefits, and an extension of the stock option exercise window from 12 months to 36 months.
Lubin wrote that the web3 ecosystem is evolving rapidly and is about to go mainstream, with web3-native companies making great strides and more traditional companies leaning into web3. He emphasized that Consensys plans to make several announcements in the near future to demonstrate its commitment to decentralization.
The layoffs, Lubin concluded, are necessary for the sustainability of Consensys. The company continues to face challenges due to the complexities of the crypto space and the ongoing regulatory uncertainty. Despite these challenges, Lubin remains optimistic about the future of web3 and Consensys' role in it.
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