ConsenSys Leader Joe Lubin to “Refocus” Company’s Blockchain Direction, Layoffs a Possibility
The employees of ConsenSys, the Ethereum hub company created by Joseph Lubin, the co-creator of the Ethereum network, have received an ominous email last Friday night, November 30. According to the email, sent by Lubin himself, ConsenSys would change and would suffer a massive strategic shift.
Lubin used words like “refocusing priorities” to bring more rigor, structure, sustainability and accountability to the company, so it could realize its vision. This would be ConsenSys 2.0. Now, everybody knows that refocusing and talking about a bright future are basically pretty words for “we’re gonna fire a lot of people”, so it can be considered a very cruel touch to send this kind of thing for employees on a Friday night.
As the price of Ether is down to around $100 USD after having an all-time high of $1,400 USD this year, a layoff would be expected, so nobody would be surprised in knowing that the whole change is about to automate more services, drop some others, use buzzwords and fire people to reduce costs. Therefore, employees would be right to be pissed or afraid to receive such an email.
When Coindesk asked him directly about layoffs, Lubin only said that they were looking at “lots of different situations” and that some departments might shrink but that others would grow in this new era of the company, so nothing could be certain at this point.
ConsenSys was created four years ago, in 2014. The company had a quick growth and currently has more than 50 companies under its umbrella. The company also has ties with big companies like Fidelity and Nasdaq.
The company has many branches around the world for various reasons and sponsors many activities related to the crypto industry and the Ethereum network.
Nobody knows if ConsenSys 2.0 will be a desperate maneuver to survive or a genuine attempt at innovation, but Lubin wants us to believe that it will be the former. He affirmed that it is not enough to “do cool projects” anymore and that the company will focus on being more rigorous and act in different lines, including financial sustainability.
On the email, Joseph Lubin affirmed that projects will be disbanded more quickly and declared “learning successes” to use what was learned from them and then abandoning them and moving to other more successful enterprises instead.
It was also stated that the company has been talking more to external investors lately in a collective effort to open up funding opportunities for the company and its supported ventures. This is said to continue in ConsenSys 2.0.
Another point is that the businesses sponsored by ConsenSys would be told to not be too dependent on their tokens and their price and to create businesses that could thrive anyway. That’s a lesson learned by all who survived the bear market.
The letter was actually a very poor excuse for “hey, we really have to cut costs and we’re going down” with some heavy marketing on top of it, but at least Lubin tried to sugarcoat it instead of letting people panic over the fact that ETH is in a bad place right now and the company probably does not have a lot that it can do about it, so it has to be more efficient in order to survive.
At least, it seems like ConsenSys will continue to have the same focus and goals, it will only make internal changes to be able to survive in the bear market and evolve into something more self-sustainable.
He could have not sent it on a Friday night, though, huh? What a way to ruin the employees weekend.