Consensys, the Ethereum-based blockchain software company known for developing the widely used MetaMask wallet, has confirmed plans to reduce its workforce by 20%—about 162 of its 828 total employees.
The restructuring, revealed by CEO Joseph Lubin, reflects Consensys’ need to address rising economic and regulatory challenges, particularly in the U.S., which has seen heightened compliance demands.
The layoffs are part of a broader effort to streamline operations, prioritize essential products, and ensure the company’s long-term growth.
Why is Consensys reducing its workforce?
Consensys’ decision to reduce its workforce stems from mounting economic and regulatory pressures impacting its core business.
CEO Joseph Lubin pointed to inflation, high interest rates, and liquidity constraints as key motivators for adopting a leaner approach. Additionally, regulatory ambiguity in the U.S. has increased compliance costs, adding to operational uncertainties.
Lubin emphasized that these adjustments are critical to preparing Consensys for resilience and adaptability in the evolving web3 space.
Consensys Extends Support for Affected Employees
Consensys is committed to supporting employees affected by the restructuring, offering severance packages based on tenure, extended healthcare benefits, and career assistance.
The company is also providing outplacement services, including coaching and networking, to help employees transition into new roles.
Additionally, the exercise window for stock options will be extended to 36 months, granting more flexibility.
Future Focus on Core Products
In the wake of the restructuring, Consensys intends to center its efforts on its flagship products, MetaMask and the Linea network.
MetaMask is set to receive updates to enhance user experience and multi-chain support, whilst the Linea network, leveraging zkEVM technology, will focus on scalability improvements.
These developments are anticipated to be showcased at the upcoming Devcon conference in November, where Consensys will outline its vision for the future of these key products.
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