ConsenSys, a blockchain technology company, is planning to cut 11 percent of its workforce, or 96 jobs, CEO Joseph Lubin said in a letter.
ConsenSys is planning job cuts to reduce operating expenses while increasing the strength and focus of the product teams to adjust to challenging and uncertain market conditions, Brooklyn, New York-based ConsenSys’ CEO said.
Crypto companies including Silvergate Capital and Coinbase Global are also looking at reduction in cost to improve profit.
Nearly $2 trillion in value was wiped out from the crypto sector last year on rising interest rates and exacerbating worries of an economic downturn. The slump in crypto vale has eliminated key industry players such as Voyager Digital, Three Arrows Capital and Celsius Network.
ConsenSys will provide severance packages, services of an external placement agency as well as extension of healthcare benefits to the affected employees.
ConsenSys, founded by Joseph Lubin, is an Ethereum blockchain firm whose products help developers, enterprises and users build applications geared towards Web3 space. Last year, the company more than doubled its valuation to over $7 billion.