Ethereum 
$2,623 Focused blockchain technology company Consensys announced that it will reduce its number of employees by 20%. This decision, which affected approximately 162 employees, was attributed by the company’s founder and CEO Joseph Lubin to macroeconomic challenges and increasing regulatory pressure from the U.S. Securities Exchange (SEC).
Reasons for Downsizing
In its latest blog post, Consensys announced that it has decided to reduce employment by 20%, affecting approximately 162 employees in different departments. The company announced this decision due to macroeconomic pressures such as rising inflation and tightening liquidity conditions.
Zoom Lupine stated that the pressure exerted by the US SEC left their company and others in the industry facing significant legal costs. He stated that these cases affect the operational budgets of companies and slow down the growth in the sector.
“Such attacks by the U.S. government will cost many companies millions of dollars as they are investigated, sued, or receive Wells Notices.”
Lubin stated that US SEC lawsuits have led to job losses and halted productive investments in the blockchain industry. However, he emphasized that Consensys is committed to supporting Ethereum’s mission and continuing its work towards decentralization.
“To remain competitive, we need to become more agile, more effective and higher performing.”
Future Plans and Strategy
Despite the layoffs, Consensys reaffirmed its commitment to decentralization. According to Lubin, the company’s long-term vision is to evolve into a “Network State” structure where teams are loosely connected to support innovation.
This decentralization trend, supported by projects such as MetaMask and Linea, aims to strengthen the web3 ecosystem. Consensys plans to increase MetaMask’s cross-network capabilities and launch new features such as the MetaMask card.
Uncertainty Across the Industry
The US SEC continues to create uncertainty in the industry with lawsuits against crypto firms. Many industry leaders say they are disappointed by the regulator’s negative impact on business growth and innovation. For example, Ripple 
$0.523461 and the SEC, Ripple executives were forced to hire new lawyers. They have continued to cover the trial expenses for nearly 4 years.
Amid these challenges, Consensys focused on aligning its strategy with its core business areas and keeping operational costs under control. Lubin stated that maintaining financial resilience in these market conditions is critical for the long-term sustainability of the company.
Joseph Lubin announced that they will be making concrete announcements in the coming weeks to show their commitment to decentralization. These steps are seen as part of Consensys’ strategic alignment process, along with ongoing US SEC conflicts across the industry.
As a result, Consensys’ workforce reductions and regulatory pressures are shaping the company’s efforts to achieve its long-term goals. The company aims to overcome the challenges it faces with its strategy focused on decentralization and innovation.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
