Consensys has announced a layoff of 49 employees, which constitutes 7% of its total workforce. This move follows the acquisition of Web3Auth and is aimed at enhancing profitability.
Reasons for Layoffs
The decision to reduce the workforce was initiated by CEO Joe Lubin and is linked to the drive to improve the company's profitability post-Web3Auth acquisition. "This restructuring aims to enhance overall profitability," said Joe Lubin.
Market Impact
Current reports indicate that markets and industries remain largely unaffected, with Consensys continuing to hold its position as the largest corporate Ethereum holder. No immediate liquidity shifts or changes in Total Value Locked (TVL) have been reported.
Future of Consensys
Despite the layoffs, Consensys is continuing to hire for various positions, indicating ongoing business activities. The organization reaffirms its commitment to Ethereum infrastructure, with no significant impacts on principal tokens or DeFi protocols noted.
In conclusion, the layoffs at Consensys are part of a restructuring strategy aimed at improving the company's profitability after the recent acquisition of Web3Auth, while it maintains its status as a leading Ethereum holder.
