Consensys is reducing its workforce by 20%, a move designed to streamline operations and reinforce its leadership in the web3 space, according to an Oct. 29 release.
The staff cuts are part of its new restructuring plan, which aims to strengthen its long-term sustainability and commitment to decentralization as it navigates tough economic conditions and regulatory pressures.
Challenging environment
In the announcement, Consensys highlighted the impact of rising interest rates, inflation, and regulatory uncertainty, which it says have slowed growth and added complexity for US-based web3 companies.
Criticizing the lack of regulatory clarity and recent scrutiny by the US Securities and Exchange Commission, the firm contended that the current environment risks stifling innovation and discouraging investment in the digital asset sector.
Despite these challenges, Consensys stated that the web3 ecosystem is on the verge of mainstream adoption, with both web3-native companies and traditional firms increasingly exploring decentralized technologies.
Consensys CEO Joseph Lubin said:
“Even in the face of these challenges, our ecosystem is on the precipice of becoming a globally systemically defining force, with web3-native companies making great strides and more traditional companies leaning into web3.”
Realigning for innovation
Consensys said it continues to prioritize decentralization as a central mission, and it is moving forward with plans to transform core products like MetaMask and Linea into decentralized protocols.
Through this restructuring, the company aims to gradually evolve from a centralized entity to what it describes as the “Consensys Network State,” where decentralized teams drive innovation and autonomy.
Looking ahead, Consensys plans to improve MetaMask’s user experience, enhance its multi-chain functionality, and expand its offerings, including the recently launched MetaMask card. Additionally, the Linea network’s zkEVM technology stands as a key pillar in Consensys’ roadmap, with further details expected at Devcon in November.
Through these changes, Consensys aims to position itself to navigate the evolving web3 landscape, emphasizing accessibility, efficiency, and opportunities for broader participation in the decentralized economy.