Consensys Cuts 7% of Staff in Latest Crypto Industry Shake-Up: Report

Consensys, the Ethereum-focused software firm behind MetaMask, is reportedly laying off 49 employees, or roughly 7% of its workforce, as part of a restructuring effort aimed at improving profitability.

Bloomberg reported the job cuts on Tuesday, with a spokesperson describing them as a step in a broader realignment of priorities following the firm’s recent acquisition of Web3Auth, a startup with about 30 staff.

Those employees will remain with the company, and hiring is said to continue in select roles. Consensys’ largest office remains in Brooklyn.

The firm didn’t return Cryptonews’ request for comment by press time.

Consensys, a software provider run by one of the co-founders of Ethereum, is planning to lay off 49 people, or about 7% of its workforce https://t.co/G3l2itQjEB

This marks the second round of layoffs in under two years. In early 2023, the company eliminated 11% of its workforce, citing macroeconomic uncertainty and regulatory pressures.

That followed a larger move in 2022, when it cut 20% of staff, letting go of 162 employees.

However, now, the regulatory environment in the US has shifted significantly since the start of President Donald Trump’s second term.

Once skeptical of digital assets, his administration has now taken a more crypto-friendly stance.

In a notable reversal, the US SEC dropped its case against Consensys earlier this year.

The agency had previously accused the company of acting as an unregistered broker and collecting more than $250m in fees through staking products. The dismissal of the case shows a broader retreat from the SEC’s earlier enforcement-driven approach to crypto regulation.

Consensys is one of the most influential players in the Ethereum ecosystem. Founded by Ethereum co-creator Joe Lubin, the company operates MetaMask, a widely used digital wallet for managing crypto assets and accessing decentralized applications.

In May, Lubin launched a new initiative through SharpLink Gaming, where he serves as chairman. The publicly traded company has begun accumulating Ether in a bid to support the ecosystem and strengthen the token’s value.

SharpLink secured a $425m private investment in a public equity deal, with Consensys leading the round.

The layoffs come as crypto firms across the board prepare for what could be a new wave of public listings. Following the successful IPO of stablecoin issuer Circle in June, companies such as Kraken, Gemini and BitGo are reportedly exploring plans to go public.

For Consensys, streamlining appears to be part of a larger recalibration. Even as it reduces headcount, the company is expanding strategically through acquisitions and exploring new revenue avenues.

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