Consensys, the developer behind the popular crypto wallet MetaMask, has announced a 20% reduction in its workforce, as detailed in a recent blog post from its founder and CEO, Joseph Lubin. Lubin cited macroeconomic pressures and regulatory challenges in the Web3 industry as key factors behind the decision.
“To maintain our competitive edge, we must become more adaptable and efficient,” Lubin stated on X. “This adjustment positions Consensys for continued innovation in potentially volatile markets and reinforces our commitment to leading in the evolving Web3 space.”
The workforce reduction comes as Consensys faces legal pressures, particularly from the U.S. Securities and Exchange Commission (SEC). A U.S. judge recently dismissed a lawsuit in which Consensys contested the SEC’s classification of ether as a security. Additionally, the SEC is investigating Consensys over potential registration issues related to MetaMask’s swaps feature.
In light of the layoffs, Consensys has assured generous severance packages and extended stock options for affected employees. This restructuring follows a separate lawsuit filed last year by former employees, who allege the company failed to fulfill equity promises dating back to 2014.
Despite these hurdles, Consensys remains valued at over $7 billion, supported by significant capital injections. Lubin’s strategic restructuring emphasizes Consensys’s commitment to leadership in Web3, even amid regulatory and market uncertainties.
