worldcoinindex.com
Developer of popular crypto wallet MetaMask, Consensys, announced a 20% workforce reduction, as outlined in a recent blog post by its founder and CEO, Joseph Lubin. Lubin attributed the decision to a combination of macroeconomic pressures and regulatory uncertainties facing the Web3 sector.
“To maintain our competitive edge, we must become more adaptable and efficient,” Lubin shared on X. “This adjustment will help us position Consensys for sustained innovation, even in potentially volatile market conditions, and ensure our continued leadership in the evolving Web3 space.”
This move comes as Consensys faces legal headwinds with the U.S. Securities and Exchange Commission (SEC). In recent developments, a U.S. judge dismissed a lawsuit where Consensys contested the SEC’s categorization of ether as a security. Additionally, the SEC is scrutinizing Consensys for allegedly not registering as a broker in its MetaMask swaps feature.
In response to the layoffs, Consensys assures that impacted employees will receive generous severance packages and extended stock options. The announcement also follows a separate lawsuit filed last year by former Consensys staff, who allege unmet equity promises dating back to the company’s startup phase in 2014.
Despite these challenges, Consensys has maintained a valuation exceeding $7 billion, supported by significant capital raises. Lubin’s strategic restructuring underscores Consensys's intent to remain a leader in the Web3 space while navigating the complex landscape of regulatory and market shifts.