April 21, 2020 – Ethereum firm ConsenSys has laid off 14% of its staff. A total of 90 employees lost their jobs but the firm said they will be given 2 months of severance pay and help to find work.
Citing the current health crisis situation because of COVID-19, ConsenSys told Coindesk that the company analyzed its business situation and now focused on rebalancing priorities and reevaluating timelines. News outlet Decrypt quoted Joseph Lubin saying at a Zoom meeting that he considered “many levers” they could pull to “weather the storm”, including consulting people inside and outside the company, consulting with investors, reviewing government assistance programs, and exploring ways to collaborate with other projects in the ecosystem.
Note: News media Decrypt has funding from Consensys.
Mr. Lubin, however, said layoffs would be unavoidable.
ConsenSys affirms that all key operational aspects of the business “are preserved to ensure the development and service of key products and solutions.
Last February, ConsenSys announced that it will reduce its workforce by 14%. ConsenSys explains this move is needed so that the company can prioritize the development of its infrastructure platforms.
In 2018, ConsenSys laid off 13% of its staff so that it “can refocus its priorities,” said CEO Joseph Lubin. By that time, the company has grown rapidly, spanning 50 ventures. Forbes estimated its annual burn rate at over $100 million in 2018.
Late last year, ConsenSys also shut down its Philippine and India operations.
This article is published on BitPinas: ConsenSys Cuts 14% of Staff Due to COVID-19 Situation