ConsenSys Restructuring Could Reduce Staff by 50-60%
Earlier this month, we reported that ConsenSys, the Ethereum (ETH) development studio founded by Joseph Lubin, let go of 13% of its 1,200-person staff as the cryptocurrency bear market entered its twelfth month.
Now, a recent report by The Verge indicates that ConsenSys is quickly spinning out startups (“Spokes”) that it previously supported via its internal incubator, which will have significant implications on the group’s staff.
According to the report, sources familiar with the matter speculate that this restructuring could result in a reduction of up to 50 to 60% of ConsenSys’ workforce. Spoke team sizes range from 5 employees to as many as 50.
ConsenSys previously told CoinDesk that it is refocusing its priorities to improve its business operations, which it explicitly stated includes over 50 spoke startups under incubation.
“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,” the company detailed in a statement.
This news comes as other major Ethereum-based projects have begun to cut staff.
Last month, Steemit, Inc., the company behind the open-source steemit.com, a decentralized app on the Steem blockchain, has laid off 70% of its staff, More recently, Status (SNT), a mobile operating system for Ethereum, has cut 25% of its staff of around 100 people.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.