Why crypto software company ConsenSys is laying off nearly 100 employees

New York-based ConsenSys, the crypto software company and parent company behind MetaMask, is laying off 11% of its staff, Reuters reported on Thursday.

Although the year 2023 is barely a month old, the digital currency sector has already seen a series of ups and downs.

The crypto market has lost around $2 trillion in value in 2022 due to the jump in interest rates and the growing stress of the economic crisis.

Josip LubinConSenSys CEO Joseph Lubin | Source: AFP PHOTO / Emmanuel Dunand

Since April last year, crypto companies have fired tens of thousands of employees.

Bad market conditions to blame for job cuts

Joseph Lubin, CEO of ConsenSys, cited “uncertain market conditions” as the reason for the termination, according to the report.

Lubin was quoted by Bloomberg as saying that in order to manage “through these cycles,” the company regularly engages in “conservative financial planning and takes appropriate steps to ensure we have the resources to fulfill our vision.”

The company stated that management will notify each affected employee today.

Ethereum has become the world’s most commercially significant blockchain platform, hosting applications such as decentralized exchanges and automated market makers.

The big boss of ConsenSys is an early proponent of the blockchain network.

Crypto winter victims

ConsenSys, which currently employs approximately 900 people, is one of a number of companies that have been forced to cut staff during the crypto winter, which has cost the industry an estimated 27,000 jobs since April.

The cuts are the latest in a string of layoffs at major digital assets companies over the past few weeks.

Coinbase Global has laid off around 950 employees, or 20% of its workforce, while crypto-friendly bank Silvergate Capital has cut its workforce by 40%.

Genesis, a cryptocurrency lender, cut 30% of its staff, while another exchange, Huobi, cut its workforce by 20%.

Igor Zakharov, CEO of DBX Digital Ecosystem, explains:

“The crypto market has already felt the effect of global events, especially the Russia-Ukraine conflict that has caused turmoil in global finance.”

Crypto total market cap at $923 million on the daily chart | Chart: TradingView.com

According to the report, ConsenSys will provide severance pay, outside recruitment agency services and continued health insurance to those who will be eliminated from the company.

In March, ConsenSys closed a $450 million funding round at a valuation of over $7 billion, making it one of the largest crypto investments of 2022.

Featured image from Mental Floss

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