ConsenSys, a blockchain software technology firm, might do significant cuts to its staff based on a report of Verge, on Dec. 20.
The Verge reported that ConsenSys is running out the previously backed startups, few of them without financial support. How this is a big part of the firm, it will have an impact on the ConsenSys’ workforce. The biggest impact likely will be on its internal incubator Consensys Labs. The number of employees to be laid off will be a big percentage based on the source. This one could be anywhere between 50 and 60% of the total employees of ConsenSys.
ConsenSys Labs reorganise its structure, the source claims. With the new one, it will focus less to be an incubator, and the firm will focus on normal investors.
Way of change
ConsenSys sent a letter to its staff, and the source released the report after it. The company said, they are working on a new business profile. The new profile will be more stable and stronger aiming an increasingly “crowded” competitive blockchain space.
The CEO of the company, Joseph Lubin, stated that “we must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are.”. While ConsenSys planning to reorganise staff from shuttered projects to other initiatives, Lubin reportedly “did not rule out layoffs.”
The firm did not refused the upcoming layoffs and said that it is trying to solve the situation with every project to “determine a path forward, whether that will be internally as a part of ConsenSys 2.0, or as an external entity.”
“The world has not collapsed as [Lubin] planned, and so he needs to pivot his company because it was orchestrated for a vision only where Ethereum would be $10,000,” based on the source.
Several main cryptocurrencies, such as Ethereum (ETH) and Bitcoin (BTC) dropped its price with a significant percentage on Nov. 14. The price of Bitcoin fell below $5,600 for the first time in 2018.
Earlier last week, crypto investment bank Galaxy Digital sent a letter for its clients. The company said that short rallies like the current one are what happens “before a real rally ensues.”. Galaxy Digital summarized that the current “short” crypto rebound “has more legs” than people think, citing upcoming involvement in the industry by institutional players.
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