Blockchain software developer ConsenSys retains ability to achieve goals after recent layoffsCEO Joe Lubin claimed in a Feb. 7 interview with Cointelegraph, stating: “we’ve pretty much retained all of our capabilities.”
According to Lubin, the cuts were applied “primarily because of potential headwinds and potential uncertainty” and partly because of declining volume in the ConsenSys ecosystem due to “macroeconomic and geopolitical” factors.
Lubin said his team was concerned that looming troubles in the VC market would make it difficult for cryptocurrency companies to raise cash, so the firm had wanted to be prepared for this possibility, explaining:
“There’s still some pretty worrying stuff going on in supply chains, in materials and chips, in VC funding, there’s potentially a lot of dry dust out there, but there’s going to be a lot of companies coming into the market at the same time. And the VCS are not kind or generous. They’re going to hold off until some kind of shakeup happens in the tech space, I think.”
Lubin said the staff cuts have helped provide a “significant landing strip” to finance future operations and may even allow the company to buy some smaller companies that will “add really valuable pieces” to ConsenSys. In Lubin’s opinion, This has put the company in a strong position to weather any global economic troubles that lie ahead in the near future.
Consensys announced the layoff of 11% of its workforce on January 19. Other blockchain companies also announced layoffs in January, including Coinbase, Gemini, DCG, and Blockchain.com. This followed a year-long drop in cryptocurrency prices and trading volume in 2022. A CryptoCompare report from October claimed that that month had seen the lowest daily trading volume for crypto products ever, and the Coinbase CEO Brian Amrstrong said in December that 2022 trading volume had been “about half” that of the previous year.
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