Consensys plans to cut 7% of its workforce to improve financial efficiency. The co-founder of Ethereum leads the company to focus on consolidation after a previous restructuring.
The software company Consensys just announced a plan to lay off 49 employees, equivalent to 7% of the total workforce. This move is part of a profit optimization strategy as the cryptocurrency market stabilizes in the United States.
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Consensys announced the layoff of 49 employees, about 7% of the company's total workforce.
The restructuring aims to improve financial efficiency after having reduced 20% of the workforce the previous year.
The regulatory environment for cryptocurrencies in the United States is becoming more favorable, facilitating companies preparing for IPOs.
Why is Consensys cutting its workforce?
Mr. Joseph Lubin, co-founder of Ethereum and CEO of Consensys, explained that the workforce reduction aims to enhance profitability and adapt to fluctuations in the global cryptocurrency market. According to a Bloomberg report on July 22, 2024, the company plans to lay off 49 people, accounting for about 7% of the workforce.
Earlier, in 2023, Consensys reduced its workforce by 20% due to uncertain legal factors and the macroeconomic environment. The latest action is an effort to continue balancing scale with the goal of sustainable development.
The restructuring of the workforce is not only a reaction to the market but also a preparation step for Consensys for long-term growth opportunities.
Joseph Lubin, CEO of Consensys, July 2024
How is the regulatory environment in the United States affecting Consensys?
By mid-2024, the regulatory environment for cryptocurrencies in the United States showed many positive signs. After Joe Biden's re-election and the withdrawal of the lawsuit against Consensys by the Securities and Exchange Commission (SEC), regulations became more open and clearer.
Legal expert John McClain commented that this helps cryptocurrency companies like Consensys feel more confident in building products, expanding teams, and developing business plans, including preparing for IPOs.
What are Consensys's staffing plans after the restructuring?
Despite reducing 7% of the current workforce, Consensys still retains the entire team of the startup it just acquired, consisting of about 30 people. The company is also continuing to recruit new personnel to support key projects, indicating a development strategy that runs parallel with improving operational efficiency.
We are committed to sustainable development and attracting the right talent to maintain a leading position in the Blockchain software industry.
Joseph Lubin, CEO of Consensys, July 2024
Frequently Asked Questions
Why is Consensys reducing its workforce in the context of a growing cryptocurrency market?
Due to the company's priority in restructuring the organization to ensure financial efficiency while preparing for long-term development steps like IPO. The legal stability in the United States also gives them more confidence in their plans.
How does the lawsuit with the SEC affect Consensys?
The withdrawal of the litigation plan helps reduce legal pressures, creating favorable opportunities for Consensys's expansion strategy and attracting investment.
Does Consensys retain the employees of the startup it just acquired?
The company retains all 30 employees of the newly acquired startup to maintain the project and continue growth in new areas.
What is Consensys's position in the market currently?
Continuing to be a leading unit in software development on the Ethereum platform, Consensys is solidifying its position by restructuring to adapt to the current financial environment.
Does Consensys have any plans for the near future?
The company focuses on expanding its workforce, accelerating new projects, and preparing for the possibility of raising capital through an IPO in the favorable cryptocurrency regulatory environment in the United States.
Source: https://tintucbitcoin.com/consensys-sa-thai-49-nhan-vien/
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