Blockchain’s ConsenSys Slices 13 Percent Of Staff In Big Shake-up

Blockchain, News | December 6, 2018 By:

ConsenSys, the ethereum developer studio, is laying off 13% of its staff, the company said today.

The layoffs are not entirely surprising, given that founder Joseph Lubin sent out a letter last week warning of a belt-tightening and a “re-focusing of priorities.”

“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,” said a statement.

The drop in price of ethereum has devastated several companies, but the layoffs at ConsenSys are particularly ominous, given its prominence in the industry. The development studio has spawned a fountain of initiatives over the years, some wildly innovative and far-reaching.

Ether, the transactional method which powered the ethereum network, is now below the $100 mark, and founder Lubin is one of the world’s largest holders.

ConsenSys had more than 50 ventures underway and Forbes estimated its yearly burn rate at $100 million.

Lubin said in his letter that ConsenSys is entering a new phase that will be marked by greater efficiency, accountability, and attention to revenue.

“We must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are,” said Lubin’s letter. He added: “We now find ourselves occupying a very competitive universe…. we must recognize that what got us here will probably not get us there, wherever ‘there’ is.”

Moving forward, ConsenSys will emphasize “creating tangible value,” which includes “development of core ethereum infrastructure; the funding of decentralized apps through the company’s venture studio; the selling of blockchain solutions, including advisory services, to enterprise clients; and the educating of both developers and the general public in blockchain technology.”