ConsenSys, the blockchain software company behind the popular crypto wallet MetaMask, is laying off a significant portion of its workforce, founder and CEO Joseph Lubin announced.
The layoffs will affect approximately 20% of the company’s staff, Lubin said in an Oct. 29 statement. The CEO of ConsenSys explained the reasons for the “difficult decision” to lay off 160 employees.
According to Lubin, who is also a co-founder of Ethereum (ETH), the decision to downsize comes amid a difficult regulatory environment. ConsenSys is also looking to streamline its operations to address macroeconomic pressures.
“Today, we are making the difficult but prudent decision to streamline our operations to position Consensys for rapid and continued innovation, long-term sustainability in potentially volatile scenarios, and continued leadership in the web3 space”
The move, he added, will help the company remain competitive.
Turning to the macroeconomic landscape, Lubin highlighted the impact of rising interest rates and inflationary pressures, as well as tight liquidity, factors that have affected many companies in the crypto sector.
There’s also the issue of regulatory uncertainty, with ConsenSys incurring legal fees in its ongoing battle with the U.S. Securities and Exchange Commission.
“Several cases with the SEC, including ours, represent significant jobs and productive investments lost due to the SEC’s abuse of power and Congress’s failure to resolve the problem,” he said. note.
The SEC’s various enforcement actions, including lawsuits, investigations, and Wells notices, cost affected companies millions of dollars.
The ConsenSys CEO’s remarks reflect broader sentiment in the crypto space, with many accusing the SEC and its chairman Gary Gensler of an anti-crypto stance that is harming the industry in the United States.
This situation has led some companies to sue the regulator for alleged abuse.
In April of this year, Consensys sued the SEC over the regulator’s stance on Ethereum, and in October wrote an open letter to the future US president on crypto regulation.
As Consensys looks to lay off staff, some crypto companies impacted by the macroeconomic environment have been looking at different options. Strategic options include mergers and acquisitions and going public.
