Consensys Axes 7% of Staff in Latest Crypto Belt-Tightening Move
Another bloodletting in blockchain land. Consensys—Ethereum's most prolific incubator—just lopped off 7% of its workforce. No sector is immune to the great crypto recalibration.
Behind the layoffs: A familiar cocktail of overhiring during the 2021 mania and the cold shower of 2023's regulatory onslaught. The company's MetaMask wallet remains the industry's golden goose, but even golden geese get leaner diets when VCs stop writing checks.
Silver lining? At least they didn't pull a Celsius and make employees hold the bag. Yet.
Further Restructuring Efforts
According to Tuesday’s Bloomberg report, the company behind the MetaMask wallet will reduce its workforce by 7%, or 49 people, in an effort to increase profitability. A spokesperson of the company confirmed that the MOVE is a shift in priorities, following the firm’s acquisition of Web3Auth.
CryptoPotato covered the last restructuring by Consensys, which affected 20% of the workforce, or approximately 160 employees. The cited reason at the time was the US Securities and Exchange Commission (SEC)’s “abuse of power.”
Before that, there was another reduction in staff numbers, affecting 11% of the employee count, or 96 people, due to uncertain market conditions.
It appears that the easing conditions and crypto-friendly regulations are insufficient to alleviate the need for reorganization within the business, or perhaps it’s a strategic move and preparation for further attainments.
Legal Troubles And Wins
The software firm has had its fair share of legal woes, dating back to late 2023, with the founder, Joseph Lubin, being sued by former employees for allegedly breaching equity agreements; the case remains active to date.
In early 2024, the company challenged the SEC in an attempt to prevent it from classifying ETH as a security, which was quickly resolved in favor of the broader cryptocurrency space.
Later in the same year, roles switched, and the SEC went against the blockchain tech company, alleging that it offered unregistered securities through trading and staking via their wallet.
This case recently came to a close in February of this year, with both parties reaching an agreement and dismissing the proceedings.
Consensys is not the only company to have faced legal issues, with cases involving industry giants like Coinbase and Binance, both of which ended favorably for the exchanges.
It would also be worthwhile to note the closed investigations by the SEC involving players such as Robinhood, OpenSea, Kraken, and others, which can be broadly considered favorable to the crypto industry.
