- ConsenSys is due to lag off up to 60 percent of their workforce as several projects are being phased out
- This is in an attempt to curb spending and inspire investor confidence
Bad news for ConsenSys. It seems that many of the firm’s startups are going to be phased out and there will be a number of layoffs. According to reports, these layoffs could affect up to 60 percent of ConsenSys’ workforce.
Bear market taking its toll
The layoffs will come in the form of the closing down of spokes- startups that were being developed by ConsenSys Labs, the internal incubator arm of ConsenSys. Each spoke is comprised of between 5 and 50 people.
The spokes are now being phased out and many of them have not fully developed products that are viable to market. With this new development, many will find themselves without adequate financial backing and might have to fold up.
When contacted, a representative at ConsenSys did not deny the rumors but instead said that they are consulting with the spokes in question to “determine a path forward, whether that will be internal as a part of ConsenSys 2.0, or as an external entity.”
These new changes don’t come as much of a shock as they just recently laid off about 13 percent of its workforce and is now evolving into what its founder Joe Lubin calls ConsenSys 2.0.
This new era for the firm is an attempt to streamline operations and generate more funding, possibly from external sources. Some believe that the laying off of workforce is meant to inspire confidence in potential investors.
This has led the management to clean house. The company is “looking to reduce spending that isn’t absolutely necessary for business success,” said Frithjof Weinert, who works in the finance department.
This has apparently created a tense atmosphere among staff as no official word has been given on the layoffs.
“The office is empty, people are only finding out who’s getting fired because you try to send Slack messages and they’re not there,” a source says. “ConsenSys won’t create a list [of the projects that are being spun out] or send out anything in writing because they’re afraid of everything going to the press.”