MetaMask developer fires 20% of its workforce
Consensys, the blockchain development company known for its focus on the Ethereum ecosystem behind the MetaMask wallet, has announced a significant restructuring. The changes involve the dismissal of more than 20% of its employees.
In an interview with Cointelegraph, Joe Lubin, CEO of Consensys and co-founder of Ethereum, confirmed that the company will have to lay off 162 employees. The objective, according to him, is to simplify operations and accelerate the decentralization of different areas of the business.
Lubin explained that the decision was motivated by a series of factors. The list includes the search for financial sustainability in an economic scenario that may present volatility. As he explained, the company wants to become a “smaller and more agile” organization, ready to take advantage of the capabilities developed over the years in different areas of the blockchain sector.
Consensys, behind MetaMask, announces layoffs
Consensys is known for developing popular products and services on the Ethereum network, including the widely used MetaMask digital wallet and the Linea layer 2 protocol. With the reduction, the company now has 828 employees. These people will continue to focus on their blockchain solutions and expanding their product portfolio.
As part of its commitment to laid-off employees, Consensys will offer comprehensive severance packages, including job outplacement services and extended health benefits. Furthermore, affected employees will have an extended period to exercise their share options, from 12 to 36 months, facilitating the transition.
Legal battle with the SEC
The restructuring comes as Consensys faces a legal battle with the United States Securities and Exchange Commission (SEC). The regulator has been intensifying its attacks against companies and projects linked to Ethereum.
Asked about the possible impacts of legal costs on the restructuring decision, Lubin denied that the expenses with the dispute had put pressure on the company's resources. He also highlighted that the MetaMask developer considers these expenses necessary to face what the sector sees as exaggerated action by the administration of Gary Gensler, president of the SEC.
“We have not exceeded our resources. We were not the ones who started this clash,” said Lubin, referring to the multiple investigations and legal actions taken by the SEC against projects in the crypto ecosystem over the years.
He also highlighted that Consensys chose to adopt a strategic stance by “going on the attack” against the regulatory body. The company's idea is to try to defend the US blockchain industry.
The restructuring decision aims, according to Lubin, to ensure the long-term stability of Consensys. Furthermore, it is an attempt to position the company to better respond to the demands of a constantly evolving sector. Meanwhile, the owner of MetaMask deals with regulatory challenges and seeks to strengthen its operations.