Consensys to Cut 20% of Workforce in Strategic Restructuring

Consensys, the Ethereum-focused blockchain software firm and developer behind popular web3 wallet Metamask, has announced a 20% reduction in its workforce.

The decision, disclosed by CEO Joseph Lubin, comes as Consensys faces an increasingly challenging economic landscape alongside growing regulatory uncertainty, particularly for U.S.-based companies.

The company is implementing the layoffs to streamline operations, focus on core products, and position itself for sustainable growth.

Why is Consensys reducing its workforce?

The decision to reduce Consensys’s workforce by 20% comes as the company faces economic and regulatory pressures affecting its core operations.

CEO Joseph Lubin cited high inflation, rising interest rates, and liquidity challenges as key factors contributing to the need for a leaner structure. Additionally, unclear regulatory frameworks, especially within the United States, have increased compliance costs and created operational uncertainties.

Lubin explained that the changes are necessary to position Consensys for resilience and ongoing adaptation in the evolving web3 landscape.

What happens to the affected employees?

Consensys has committed to providing extensive support for employees impacted by the layoffs, ensuring they have resources during the transition.

The company announced severance packages that will vary based on tenure, offering affected employees additional financial stability. Consensys will also extend healthcare benefits and provide outplacement services, including career coaching and networking opportunities, to assist employees in finding new roles.

Additionally, stock options will have an extended exercise window of 36 months, offering greater flexibility to those leaving the company.

What’s next to Consensys?