Ethereum Developer ConsenSys Cuts ‘Mesh’ Workforce By 13 Percent


Ethereum development studio ConsenSys is in the process of laying off about 13 percent of its workforce, the company announced via a post published Thursday.

The move, which the company’s officials have confirmed according to Coindesk, comes only days after the firm’s founder Joseph Lubin told all employees that the company needed to re-focus its priorities as they look to ConsenSys 2.0 to streamline its operations and stay competitive.

In a company-wide letter, Lubin told staff that the restructuring process would include cutting of projects that do not add value to the company, though he did mention that it was possible some of the more than 1200 employees would be affected as a result of dropping projects.

On Thursday, the company announced the job cuts saying:

“Excited as we are about ConsenSys 2.0, our first step in this direction has been a difficult one: we are streamlining several parts of the business including ConsenSys Solutions, spokes, and hub services, leading to a 13% reduction of mesh members.”

In his earlier address to the company staff, ConsenSys chief executive said that there was going to be a major strategy shift, and explained that though the firm would try to keep its entire team, some projects were more likely to be affected as the firm pivots toward implementation of ConsenSys 2.0.

Apart from a potential shrinking in the number of workers assigned to specific projects, more emphasis would be on value, with projects being rigorously evaluated based on efficiency, accountability as well “technical excellence, coupled with innovative blockchain business models.”

A Reddit user, ostensibly among the 13 percent let go, took time to conduct an AMA that revealed they were laid-off as they hadn’t turned growth potential into actual profits.

The alleged ‘former’ employee, who doesn’t appear to be disgruntled at all, says that the writing may have been on the wall after all (for the downsizing). He quotes a “town hall style” meeting that made it clear such an eventuality was possible.

As quoted in the TNW, the anonymous ex-employee states that:

“Prior to that, the writing may have been on the wall following internal communications about spending pauses following the downturn in the price of ETH.”

The market downturn could be a significant factor in various companies’ moves to downsize their staff. Other than ConsenSys, Steemit, a content-sharing platform reduced its workforce by 70 percent to avoid being sucked by the price crash.

In just four years, ConsenSys has seen tremendous growth and currently has several offices spread across the globe.

At the moment, there are more than 50 ventures in the development studio, and a Forbes estimates that the firm burns about $100 million annually.

Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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