MetaMask developer Consensys lays off 20 percent of its employees
Consensys is laying off 20% of its workforce, according to a statement by the company.
Joseph Lubin, the founder and CEO of Consensys, said in a blog post on Tuesday explaining the reason for the decision, pointing to regulatory uncertainty and macroeconomic conditions as the reason for the layoff.
Broader macroeconomic conditions and ongoing regulatory uncertainty
MetaMask developer Consensys said in the post the macroeconomic environment became more cautious due to tightening liquidity, inflationary pressures, and rising interest rates. For innovators, builders, investors, and businesses, navigating our evolving space has become unduly challenging due to some of the markets' lack of clear regulatory frameworks.
20% of Consensys total workforce affected
In order to position Consensys for prolonged rapid innovation, long-term sustainability under potentially volatile circumstances, and leadership in the web3 space, we are making the difficult but wise decision today to streamline our operations, the post added.
20% of Consensys' employees are impacted by this lay-off decision. However, the company said in the Tuesday post that the impacted employees' contributions to Consensys are greatly appreciated, and as they embark on their next chapter, the firm is dedicated to offering them significant support, which includes career support, including 1-on-1 coaching, networking opportunities, and interview guidance, continuous healthcare benefits in applicable jurisdictions, an extension of the stock option exercise window from 12 to 36 months, and most importantly, generous severance packages based on the departing employee's tenure.
In an X post, Lubin wrote, "Today, we are making the tough but prudent decision to streamline our operations to position Consensys for ongoing rapid innovation, long-term sustainability under possibly volatile scenarios, and continued leadership in the web3 space."
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This decision impacts 20% of Consensys’ total workforce. We are deeply grateful for their contributions in getting Consensys to where it is today, and we are committed to providing all affected employees with substantial support as they move on to their next chapter.— Joseph Lubin (@ethereumJoseph) October 29, 2024
Lubin's layoff announcement follows a lawsuit filed by former Consensys employees accusing the Ethereum cofounder of not fulfilling equity pledges made during the company's early days. The lawsuit claims that when Lubin founded Consensys in 2014, many workers accepted lower pay in exchange for company equity.
DYdX Trading lays off 35% of its workforce
According to another crypto firm, in a Tuesday blog post, dYdX Trading announced that it has let go of 35% of its employees, including core team members.
CEO and co-founder Antonio Juliano explained in a blog post that the company now has the team required going forward and said goodbye to those who have left. "We realized that the company we've built is not the same as the company dYdX must be, so we decided to let go of 35% of the dYdX core team," Juliano wrote.
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