ConsenSys, the developer behind the non-custodial wallet MetaMask, is set to lay off approximately 160 employees as part of a business optimization effort, according to the company’s founder and CEO, Joe Lubin.
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The broader macroeconomic conditions over the past year and ongoing regulatory uncertainty have created broad challenges for our industry, especially for US-based companies.
— Joseph Lubin (@ethereumJoseph) October 29, 2024
He cited unfavorable macroeconomic conditions, regulatory uncertainty in the US crypto industry, and the costs of legal battles with the Securities and Exchange Commission (SEC).
Nevertheless, Lubin described the company’s financial position as stable.
According to him, ConsenSys will focus on core revenue drivers in line with its previously adopted strategy. The firm’s flagship products, MetaMask and the Ethereum Layer 2 network Linea, will serve as the foundation for further development.
“To remain competitive, we need to transform to become more agile, efficient, and even more productive,” Lubin stated.
He described the decision to reduce the workforce as “difficult but prudent.” It will affect about 20% of the staff. In an interview with Fortune, the entrepreneur clarified that this involves 162 out of 828 employees, impacting all departments.
Back in June, ConsenSys successfully ended an SEC investigation regarding Ethereum’s potential status as a security.
However, a counterclaim against the regulator’s complaint was dismissed in September.