Ethereum Production Studio ConsenSys Cuts Down Staff as Part of ‘Refocusing’ Strategy

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by Bhushan Akolkar · 4 min read
Ethereum Production Studio ConsenSys Cuts Down Staff as Part of ‘Refocusing’ Strategy
Photo: ConsenSys / Facebook

ConsenSys founder Joseph Lubin says that the company will focus more on specific and concrete projects reducing the scope of much experimentation as part of financial sustainability.

Popular Ethereum production studio ConsenSys has announced to cut down its staff by 13%. ConsenSys s a big venture which develops products and projects atop the Ethereum blockchain network. Furthermore, the company works towards the expansion of the Ethereum ecosystem by undertaking real-life projects. ConsenSys is the brainchild of Ethereum co-creator Joseph Lubin.

On Thursday, Dec. 6, ConsenSys confirmed the layoffs with CoinDesk saying that it is currently strategizing the next phase of development and “re-focusing of priorities”.

“Excited as we are about ConsenSys 2.0, our first step in this direction has been a difficult one: we are streamlining several parts of the business including ConsenSys Solutions, spokes, and hub services, leading to a 13% reduction of mesh members.”

Earlier this week, Joseph Lubin has highlighted the possibility of layoffs due to the ConsenSys 2.0 re-structuring. Moreover, the company had priorly informed its 1200 staffers last week through an e-mail.

Layoffs – a Result of Crypto Market Slowdown?

The timing of the layoffs by ConsenSys makes us questions whether it is an outcome of the latest market slowdown. Moreover, this year’s crypto market crash has seen several companies shutting down operations. Also, Lubin calls this latest exercise a part of budget adjustments while focusing on important projects. It looks like in the current market turmoil, the company seems to reduce its scope of experimentation.

“I would call it a refocusing of priorities…On more rigor, more structure, more sustainability, more accountability,” said Lubin in his email letter. He further added:

“…it was good enough to do cool projects, [ConsenSys 2.0 will be different], we are going to focus much more rigorously across the different business lines on accountability that includes financial sustainability.”

He further continued:

“We will more quickly declare projects a ‘learning success’ and disband them, enabling their elements – technology, technologists, and entrepreneurs – to diffuse back into the sea of potentiality and reconstitute into another project with the benefit of greater experience. It recognizes that we’re in a new regime”.

ETH Price Crash Affecting Projects?

After hitting a high of $1400 in January 2018, Ethereum has been on a massive fall since then. The cryptocurrency is currently trading at just 6% price of its all-time high. Just two days back, Ethereum slipped below $100 for the first time this year. Moreover, a month back, it also lost it crowned-status of being the world’s second-largest cryptocurrency to XRP. At the press time, Ethereum (ETH) is 15% down trading at $87 with a market cap of just over $9 billion.

The Ethereum network is currently facing huge issues with respect to its scalability and growth. Moreover, several ICO projects launched on the Ethereum blockchain last year, have either shut down or moving towards other blockchain networks.

However, ConsenSys is not just any other company on the Ethereum network. This decentralized giant has a major hub in Brooklyn with offices spanning across the globe. Under the ConsenSys Umbrella, there are more than 50 ventures running as per the company officials. Hence, the ETH price movements certainly have the influence to play.

Reducing Dependability on Token Values

Lubin says that ConsenSys is working in the direction to reduce the dependency of the projects on the price of the tokens. “Certainly one goal is to enable ConsenSys and its projects to not be dependent on the price of these value tokens, that essentially they are all thriving businesses in their own right,” Lubin said.

Lubin also confirmed that they are currently talking with external investors to “open-up” funding for ConsenSys-supported ventures. Lubin says that he has absolute faith in the potential of the blockchain technology. “Blockchain is getting very, very real. It’s about the maturation of the company,” he added.

“Projects will continue to be evaluated with rigor, as the cornerstone of ConsenSys 2.0 is technical excellence, coupled with innovative blockchain business models,” ConsenSys said on Thursday.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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