• ConsenSys, a New York City-based crypto software firm and parent company of MetaMask, is laying off 11% of its employees.
• The crypto market lost about $2 trillion in value in 2022 due to rising interest rates and economic jitters.
• CEO Joseph Lubin cites “uncertain market conditions” as the cause for the terminations.
The digital currency sector has been going through a roller coaster of events since the start of 2023, with the crypto market having already lost about $2 trillion in value in 2022 due to soaring interest rates and mounting jitters of an economic crisis. This has resulted in a number of layoffs at crypto companies, and now the New York City-headquartered ConsenSys, the crypto software firm and parent company behind MetaMask, has announced that it will be sacking 11% of its personnel.
Joseph Lubin, CEO of ConsenSys, cited “uncertain market conditions” as the cause for the terminations. In a statement, Lubin said that in order to be able to manage “through these cycles”, the company regularly engages in “conservative financial planning and take appropriate steps to ensure we have the resources to fulfill our vision.” He added that each affected employee will be notified today by the management.
Ethereum has been hit particularly hard by the market downturn, with its price declining by more than 50% since its peak in February 2022. While the cryptocurrency has seen some recovery in the last few months, its price is still well below its all-time high. ConsenSys is one of the pioneers of the Ethereum ecosystem, and its layoffs are yet another indication of the difficult market environment that the cryptocurrency industry is currently facing.
Despite the layoffs, ConsenSys is still actively developing its products and services, and is reportedly working on a new layer-two scaling solution for Ethereum. The company has also been investing in a number of blockchain-based startups, and is planning to launch a new program to help companies build on Ethereum.
The layoffs at ConsenSys are a reminder of just how volatile the digital currency sector can be, and that even the most established companies are not immune to its wild swings. While the layoffs are a setback for the company, it appears that ConsenSys is determined to move forward and continue to develop its products and services to help foster the growth of the Ethereum ecosystem.