Consensys affirms Ethereum support with 20% staff reduction

Consensys, a Web3 software company, has announced a 20% reduction in its workforce due to economic challenges and regulatory uncertainties. 

According to founder Joseph Lubin, the decision aims to create a leaner and more efficient team of “effective and high-performing” individuals. 

In an October 29 statement, Lubin, who is also a co-founder of Ethereum (CRYPTO:ETH), explained that the company has faced unfavorable macroeconomic conditions and ongoing regulatory uncertainty, particularly affecting U.S.-based firms. 

The company's move comes amid heightened scrutiny in the crypto industry, with Consensys currently embroiled in a legal dispute with the U.S. Securities and Exchange Commission (SEC). 

The SEC alleges that Consensys engaged in unregistered securities sales and failed to acquire the necessary broker license. 

Consensys challenged the SEC’s authority to regulate Ethereum as a security through a lawsuit in April, but a U.S. court dismissed the case in September on procedural grounds. 

Despite these hurdles, Lubin reaffirmed Consensys' dedication to its mission. 

“Even in the face of these challenges, our ecosystem is on the precipice of becoming a globally significant force, with Web3-native companies making great strides and more traditional companies embracing Web3,” Lubin stated. 

To departing employees, Lubin promised substantial support during the transition. 

He also indicated that the company plans to make further announcements demonstrating its continued commitment to the Ethereum project and its broader vision for Web3. 

According to Lubin, Consensys aims to adapt and solidify its role in the evolving Web3 landscape, ensuring the resilience of its ecosystem amid regulatory and economic uncertainties.

At the time of reporting, the Ethereum price was $2,637.67.