Blockchain tech firm ConsenSys mulls laying off 96 employees

According to the letter, the job cuts will help reduce operating expenses while increasing the strength and focus of the product teams to “adjust to challenging and uncertain market conditions”.

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The firm sites reasons for job cuts to rein in costs at crypto companies, comparing it with Silvergate Capital Corp and Coinbase Global Inc.

Earlier in 2022, almost $2 trillion in value was wiped out from the crypto sector on rising interest rates and exacerbating worries of an economic downturn. The slump has eliminated key industry players such as Voyager Digital, Three Arrows Capital and Celsius Network.

However, the bigger blow came after larger crypto exchange FTX filed for bankruptcy protection as its swift fall has also sparked tough regulatory scrutiny of how major exchanges hold user funds.

The New York-based ConsenSys CEO in the letter said that the firm will provide severance packages, services of an external placement agency as well as extension of healthcare benefits to the affected employees.

Founded by Joseph Lubin, ConsenSys is an Ethereum blockchain firm whose products help developers, enterprises and users build applications geared towards the so-called “Web3” space. Last year, the company more than doubled its valuation to over $7 billion.

With Reuters inputs.