Ethereum developer Consensys has announced the company's decision to fire 20% of its workforce (more than 160 employees).
In a social media post, CEO Joseph Lubin described the massive layoffs as a "tough but prudent decision."
The workforce reduction will be able to position the Ethereum developer for "long-term sustainability" under "volatile scenarios," according to Lubin.
"We are deeply grateful for their contributions in getting Consensys to where it is today, and we are committed to providing all affected employees with substantial support as they move on to their next chapter," he added.
Alex DovbnyaThe fired employees will receive "generous" severance packages, outplacement services, and healthcare benefits.
These are rather dramatic layoffs for Consensys. Back in December 2018, it fired 13% of its workforce after the cryptocurrency industry endured a brutal bear market. The Ethereum incubator also announced layoffs back in April 2020 following a severe crypto market crash. However, its most recent workforce reduction comes amid a cryptocurrency rally. The price of Bitcoin, the leading cryptocurrency, is approaching record highs. Ethereum (ETH) is also up by more than 4% over the past 24 hours alone.
As reported by U.Today, Consensys is currently embroiled in a legal battle with the U.S. Securities and Exchange Commission, which explains why the blockchain software company had to fire 20% of its employees. Its own lawsuit against the agency was dismissed by a Texas judge in September. The Ethereum developer will have to fight the SEC's lawsuit linked to the MetaMask wallet.
Vladislav Sopov
Tomiwabold Olajide
Dan Burgin