Blockchain News

Confirmed: ConsenSys To Cut Off Its Staff

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Based in Brooklyn, Consensys was founded in 2014, by Joseph Lubin, Ethereum Co-founder. It is also a blockchain software technology company. The firm aims to build infrastructural projects in different sectors & different blockchain services. The decentralized company has grown rapidly spanning across the globe in the past four years. There are more than 50 startups under Consensys umbrella according to sources.

However, on 20th December it was confirmed that the company is all set to cut off its staff. Consensys is reportedly spinning out or cutting off funding for startups it previously backed. This will drastically impact the workforce of the firm and also leave an unsure future of well-funded and most ambitious blockchain startup. It runs an internal incubator known as ConsenSys Labs which accommodate the startups or “spokes.” There are around 36 spoke teams whose size range from 5 to 50 employees. This will let go 1200 employees approximately. The significant success of Ethereum made Lubin as one of the richest men in the crypto world with a total sum of $1to $5 billion. Therefore, he used his fortune to invest in Consensys. But the price of Ethereum has dropped around 93% since January. Therefore, it is believed that the company is actively seeking external funding or investment in the recent past. Forbes reported that the company has a burn rate of almost $100 million per year.

The company official also stated:
“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.”

Consensys 2.0 is technical excellence combined with advanced blockchain business model. Therefore, the projects will be strictly evaluated, and thus there might be a shrink in the staff count of some of the projects” highlighted by Lubin. He also said, “we must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are.” The details were shared via email sent to the staff last week. The email included the company’s plan to streamline and toughen its business style in the competitive blockchain space.

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