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New York City-headquartered ConsenSys, the crypto software firm and parent company behind MetaMask, is sacking 11% of its personnel, Reuters reported, Thursday.
While 2023 is just a month away, the digital currency industry has already experienced a number of highs and lows.
The cryptography market lost approximately $2 trillion in value in 2022 due to the spike in interest rates and the increasing nervousness of an economic crisis.
Joseph Lubin, Chief Executive Officer of ConSenSys | Credit: AFP PHOTO/ Emmanuel Dunand.
Since April of last year, crypto firms have laid off tens of thousands of staff.
JUST IN: #Ethereum development company and METAMASK creator, ConsenSys, to lay off 11% of its staff.
— Watcher.Guru (@WatcherGuru) January 18, 2023
Dark conditions in the marketplace. The job losses are to blame.
Joseph Lubin, CEO of ConsenSys, cites “uncertain market conditions” as the cause for the terminations, according to the report.
Lubin said in quotes by Bloomberg that to be able to manage “through these cycles,” the company regularly engages in “conservative financial planning and take appropriate steps to ensure we have the resources to fulfill our vision.”
Today, we are faced with the extremely difficult decision to streamline some ConsenSys teams in order to adapt to difficult and uncertain market conditions.https://t.co/Svuk9yYj6J
1/10
— Joseph Lubin (@ethereumJoseph) January 18, 2023
The company has indicated that every impacted employee will be advised today by management.
Ethereum has become the world's largest blockchain platform, hosting applications like decentralised exchanges and automated market leaders.
The big boss consensys is one of the first defenders of the blockchain net.
Cryptographical losses during the winter.
ConsenSys, which presently employs roughly 900 people, is one of the numerous companies that have been forced to give the pink slip to its staff during the crypto winter, which has cost the industry an estimated 27,000 jobs since April.
The cuts are the most recent in a series of layoffs in large digital asset companies in recent weeks.
Coinbase global releases about 950 employees, that is 20% of its staff, while crypto-friendly bank silvergate capital reduces by 40% of its workforce.
Genesis, a cryptocurrency lender, is cutting 30 per cent of its staff, while another exchange, Huobi, is cutting its staff by 20 per cent.
DBX Digital Ecosystem's CEO, Igor Zakharov, says:
"The crypto market already felt the impact of global events, particularly the conflict between Russia and Ukraine that caused unrest in global finance."
Crypto total market cap at $923 million on the daily chart | Chart: TradingView.comAccording to the report, ConsenSys will provide severance compensation, the services of an external placement agency, and the continuation of healthcare coverage to those who will be eliminated from the company.
In March, Consensys concluded a $450 million financing cycle worth more than $7 billion, securing one of the largest cryptography investments in 2022.
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