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Consensys, creator of MetaMask, is laying off 162 employees across all departments, affecting approximately 20% of its workforce, citing financial strain tied to regulatory disputes.
What's the scoop?
- Reasoning and Context: CEO Joe Lubin cited economic challenges and prolonged legal battles with U.S. regulators, including multiple cases with the SEC, as significant drains on resources and staff time.
- Relocation and Regulatory Pushback: The company, which began in Brooklyn, recently moved its headquarters to Texas and has been an active challenger of SEC oversight.
- Transition Plans: Consensys is providing laid-off employees with severance packages that include career support and extended healthcare.
Bankless Take:
These layoffs partially demonstrate the damage that the current regulatory environment has inflicted on crypto companies. As one of the oldest and most foundational companies building on Ethereum, Consensys also stands as a strategic target for the SEC. Whatever the case, this situation could prompt industry leaders to consolidate or relocate further as they adapt to ongoing legal and economic headwinds.
A message from our CEO @ethereumjoseph on the tough decision that Consensys has made today to streamline operations and position ourselves for sustainable growth and innovation while enduring a challenging regulatory and macroeconomic landscape.
— Consensys (@Consensys) October 29, 2024
This transition impacts 20% of… https://t.co/DTY6wDL3QJ
