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Consensys, the blockchain firm behind MetaMask, announced a 20% workforce cut, which will affect over 160 staff members.
Initially a Brooklyn-based incubator for Ethereum projects, Consensys now operates from Texas. The company’s ongoing lawsuit aims to confirm Ethereum’s non-security status.
Consensys Lays Off 160 Employees Across All Divisions
The firm’s CEO, Joe Lubin, cited economic challenges and mounting legal costs tied to regulatory disputes with the SEC as key factors in this decision. Lubin criticized the agency for its stance on digital assets, arguing that SEC actions hamper innovation and cost jobs. Nevertheless, Lubin described the layoffs as necessary to streamline the firm.
“Today, we are making the tough but prudent decision to streamline our operations to position Consensys for ongoing rapid innovation, long-term sustainability under possibly volatile scenarios, and continued leadership in the web3 space. This decision impacts 20% of Consensys’ total workforce. We are deeply grateful for their contributions in getting Consensys to where it is today, and we are committed to providing all affected employees with substantial support as they move on to their next chapter,” Lubin shared on X (formerly Twitter).
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
This shift is part of a broader strategy to minimize the risks tied to traditional corporate structures amid regulatory uncertainty. In addition to financial support and healthcare benefits for affected employees, Consensys pledged to accelerate its transformation into a decentralized “Network State.”
Lubin also expressed frustration with what he calls the “SEC’s overreach.” In his opinion, the regulator’s unfairness has hindered the firm’s mission of decentralization. Nevertheless, its dispute with the SEC extends beyond internal operations, stifling industry growth across the US. This, he says, risks the nation’s standing in global blockchain innovation.
The Ethereum giant has been embroiled in legal conflicts, contesting the US Securities and Exchange Commission’s (SEC) intent to classify Ethereum (ETH) as a security. Lubin argues that it disrupts his company’s work. A Texas court recently dismissed one of the company’s proactive lawsuits against the SEC.
However, ongoing SEC investigations still loom over Consensys and similar firms like Ripple. Against this backdrop, industry executives like Coinbase CEO Brian Armstrong urge the next SEC chair to drop frivolous cases and apologize for the strain Gary Gensler has brought to the industry.
“The next SEC chair should withdraw all frivolous cases and issue an apology to the American people. It would not undo the damage done to the country, but it would start the process of restoring trust in the SEC as an institution,” Armstrong posted.
Read more: Who Is Gary Gensler? Everything To Know About the SEC Chairman
Therefore, Lubin’s public critique mirrors a growing sentiment among crypto executives that US regulatory bodies lack clarity and consistency. As the Consensys lawsuit progresses, it has become emblematic of a larger industry fight for clear, innovation-friendly regulations that protect both businesses and consumers without compromising technological advancement.
Noteworthy, some victims of Consensys’ 20% workforce cut may find absorption in Alchemy, one of Consensys’ top competitors, which is reportedly hiring.
“Super sorry to hear this, these are never easy. To all affected — Alchemy Platform is hiring for dozens of roles right now, and would love to help out some folks,” Alchemy’s blockchain development lead said.