BlocksInform
Blockchain software developer consensys retains the ability to meet its objectives after the recent layoffs, CEO Joe Lubin said in a February. 7 interview with Cointelegraph, stating that “we’ve retained virtually all of our capabilities.”
Lubin believes, reductions have been implemented "mainly due to potential headwinds and potential uncertainty" and in part due to lower volumes in the ConsenSys ecosystem due to "macroeconomic and geopolitical" factors.
Lubin said his team had been preoccupied with the impending problems in the venture capital market, making it difficult for crypto companies to raise funds, The corporation therefore wanted to prepare for this eventuality, as explained by him:
There are still some pretty concerning things happening in supply chains, in materials and chips, in venture capital financing. There's a lot of dry powder, maybe. And the VCS are not nice and kind. They’re going to withhold until some sort of shakeout happens in the tech space I believe.”
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Lubin said that the staff cuts have helped to provide “significant runway” to fund operations into the future and may even allow the company to buy some smaller firms that will “add really valuable pieces” to ConsenSys. In Lubin's view, this has positioned the company well to meet global economic challenges in the near future.
Consensys announced layoffs of 11% of its workforce on Jan. 19. Several other blockchain companies also announced they were trimming staff in January, including Coinbase, Gemini, DCG, and Blockchain.com. This was in response to a one-year decrease in cryptocurrency prices and transaction volume in 2022. A report from CryptoCompare in October stated that the month had seen the lowest ever daily trading volume for crypto products, and COINBASE CEO Brian Amrstrong said in December that 2022 trading volume had been “roughly half” what it was the previous year.
