Consensys, a company co-founded by Ethereum's Joe Lubin, has cut 47 positions as part of ongoing restructuring efforts aimed at achieving profitability.
Layoffs Amid Restructuring
The layoffs of 47 employees, representing 7% of Consensys's workforce, are part of a broader organizational restructuring. This marks the third round of significant job cuts in 2023, following previous reductions of 11% and 20%. Despite these layoffs, company representatives have indicated plans to continue hiring. Recently, Consensys completed the acquisition of a startup employing about 30 people, all of whom will remain with the organization.
Improved Regulatory Environment
Amid the layoffs, Consensys has seen positive changes in the regulatory environment. The administration has adopted a more favorable approach to digital assets. Earlier this year, the Securities and Exchange Commission agreed to dismiss its enforcement case against Consensys. This development has alleviated a significant legal burden from the company. Representatives noted that the improved regulatory climate has fostered optimism within the cryptocurrency industry.
Preparing for Public Markets
The restructuring at Consensys also reflects broader trends within the industry, as many cryptocurrency companies prepare for potential initial public offerings. Circle Internet Group Inc.'s successful IPO in June has prompted other firms, including Kraken and Gemini, to accelerate their preparations for going public. Such moves necessitate greater transparency and operational efficiency to attract investors.
Consensys continues its restructuring efforts while strategically hiring in key areas, reflecting the industry's broader preparation for potential public market opportunities.
