ConsenSys CEO Claims 11% Layoff Has no Negative Effect on its Goals

February 08, 2023

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Joe Lubin, the Chief Executive Officer (CEO) of blockchain software company ConsenSys claims that its recent headcount reduction has not negatively impacted its ability to achieve its goals. For context, Lubin said that “we’ve retained virtually all of our capabilities.” He explained that the layoffs provided an easier route for the company to conserve funds and effectively run its operations.

During the Web3 builder-focused event, Building Blocks 23 which was held in Tel Aviv, ConsenSys CEO said the job cuts happened “mostly because of potential headwinds and potential uncertainty” and a declining volume of the company’s ecosystem. For Lubin, this declining volume in the ConsenSys ecosystem was contributed by “macroeconomic and geopolitical” factors.

The series of collapses which transpired in the cryptocurrency industry last year including the liquidity crunch of FTX has made many including ConsenSys, sceptical about venture funding. There is now a suspicion that investors may not be interested in releasing funds to crypto companies, hence, the decision to lay off employees and reduce operational costs.

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“There are some pretty concerning things happening still in supply chains, in materials and chips, in VC financing, potentially there’s a lot of dry powder out there, but there’s gonna be a lot of companies going into market at the same time. And VCS are not kind and generous. They’re going to withhold until some sort of shakeout happens in the tech space I believe,” Lubin clarified.

ConsenSys Announce Layoff of 11% of Employees

In the second week of January, the Ethereum-based blockchain technology announced plans to lay off a number of its staff.

At the time, ConsenSys was considering axing about 100 members of staff from its payroll. Eventually, on January 19th, the firm let go of 11% of its employees citing uncertain market conditions contributed by the massive volume of centralized finance (CeFi) collapse.

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In his recent explanation about the state of ConsenSys operations and its capacity, Lubin insists that the company is likely to acquire smaller firms that can potentially “add really valuable pieces” to it. Currently, ConsenSys has the ability to weather any global economic storm that may hit In the nearest future, according to the CEO.