Distributed ledger technology (DLT) firm ConsenSys has announced that it will be slashing its staff strength by 11% to navigate through a rough patch caused by unfavorable macroeconomic conditions.
ConsenSys CEO Joseph Lubin disclosed in a blog post that the terminations would allow the firm to focus on its core business rather than the exploration of diverse verticals. The layoffs will affect 96 employees across several teams, which Lubin says was caused by certain “poorly behaved” centralized actors, which have cast a “broad pall on our ecosystem.”
“Today we need to make the extremely difficult decision to streamline some of ConsenSys’ teams to adjust to challenging and uncertain market conditions,” Lubin said. “We are extremely grateful for their contributions and the work they’ve accomplished.”
Lubin’s statement notes that the affected employees will receive extensive severance packages, including healthcare support and assistance from an external placement agency. Despite the job cuts, Lubin notes that Consensys’ product teams would see an increase in the coming months to enable them to achieve their goals of scaling the core offerings.
Going forward, ConsenSys says it will be channeling its energy on a MetaMask end-user and developer platform and an Infura developer platform. The firm’s CEO added that its new offering would be designed to “amplify the decentralized identity and verifiable credentials ecosystem.”
Lubin expressed optimism for the industry’s future, predicting a migration from “the age of silos” toward a collaborative era without the dominance of bad actors.
“This challenging moment we are facing as an industry presents an opportunity to move from outsourcing trust to organizations that have failed repeatedly, to a future where decentralized systems automate trust and enable individuals and communities to exercise control over their own digital assets and their financial futures,” Lubin expressed.
Another day, another layoff in the space
The virtual currency industry has been plagued with a tsunami of layoffs, spelling gloom for the future. Both large and small firms have had their fair share of layoffs over the last few months, with the trend showing little to no signs of abating.
As the year opened, Hong Kong-based firms Amber and OSL announced cuts to their headcount triggered by the collapse of FTX and an extended bear market. Industry giants Huobi and Coinbase (NASDAQ: COIN) are among the growing number of digital asset service providers to have announced a reduction of their workforce in 2023 as the ecosystem braces itself for larger impacts.
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