Crypto Market Blues Hits ConsenSys, Staff Layoff Confirmation Shows Industry Is Trimming The Edges
If you have been following our blog, you may have heard that ConsenSys sent an ominous letter to its employees last Friday night speaking about how the company would “refocus”. Obviously, that was all sweet talk that would end up in layoffs of many employees of the company.
After ruining the weekend of its employees, ConsenSys has affirmed that, in order to create ConsenSys 2.0, the new version of the company, they would need to fire 13% of the staff. This was affirmed by official channels soon after Lubin wrote the letter in which he affirmed that the company would “refocus”.
He affirmed that they were excited about the future and all that the company would achieve but that they would need to follow a “difficult” road first: to streamline several parts of their company in order to make it better. This would include the firing of over a tenth of the staff.
Nobody should be surprised with the cuts as they would know that the bear market has made Ethereum crash and the token has lost most of its money so far, which could end up being a major problem for the company if they were unable to find new and clever ways to cut costs and remain profitable.
The original email talked about ConsenSys 2.0, the new version of the company. It was actually very vague about how the company will revolutionize itself to achieve better results. Lubin indicated that some other parts of the company would grow and would even hire more people but none of that has actually happened so far.
Despite all this, ConsenSys 2.0 is now a real plan and the layoffs are only the first step of major changes that are set to happen to create a more sustainable business model at ConsenSys.
The company already exists since 2014 and it was created by Joseph Lubin, the co-creator of the Ethereal network. The company is focused on sponsoring many Ethereum hubs and projects around the world and it currently has more than 50 ventures going on under the ConsenSys umbrella.
While it is sad to see so many people being laid off, something that is also happening in many other blockchain companies now, ConsenSys is expected to survive and to come out of the crisis stronger if the plans made by its top execs actually work.
Things could have been much worse, too, as other companies like Steemit have laid off 70% of their staff while ConsenSys “only” did it to 13%, which shows that the company is in a far better situation now.