In a blog post published on October 29, Joe Lubin, Founder and CEO of Consensys, discussed the company’s decision to reduce its workforce by 20% in response to global economic pressures and a challenging U.S. regulatory landscape.
Lubin talked about how rising interest rates, inflation, and tightened liquidity have created a more cautious environment for Web3. He cited “ongoing regulatory uncertainty,” adding that a lack of clear guidelines has created unnecessary hurdles for builders and investors alike.
Lubin noted that lack of action on the part of U.S. Congress in creating a clear regulatory framework for crypto and the U.S. SEC’s “abuse of power” when it comes to regulating crypto firms has ended up costing “many companies that have been investigated, sued, or sent Wells Notices, many millions of dollars.”
Lubin pointed out that while the Web3 ecosystem is advancing rapidly, broader adoption remains on the horizon, with both Web3-native and traditional firms moving into the space. He suggested that the industry’s future lies in a decentralized economy driven by smaller, agile firms that leverage Web3 and AI-powered tools.
Lubin believes that the financial climate demands a more agile company, which prompted Consensys to take what he called a “tough but prudent” approach to streamlining operations. He emphasized that the layoffs aim to position Consensys for “ongoing rapid innovation” and resilience against potential economic shifts.
In explaining the company’s support measures for affected employees, Lubin specified that Consensys is offering severance packages based on tenure, extended healthcare benefits in applicable jurisdictions, and access to outplacement services, including one-on-one coaching and networking assistance. He also noted an extension of stock option exercise windows from 12 to 36 months to recognize the contributions of departing staff.
Lubin affirmed that despite these adjustments, Consensys’ core business remains “strong and resilient.” Over recent months, he explained, Consensys has refined its strategy to focus on sustainable revenue drivers and long-term objectives, restructuring the company to align with its goals for enduring success. According to Lubin, these changes will reinforce Consensys’ role in supporting the Ethereum ecosystem and furthering decentralization.
