ConsenSys Confirms 11% Job Cuts
- ConsenSys joins a number of crypto firms, including Coinbase, in laying off employees.
- Affected employees are entitled to a generous severance package.
- Microsoft also announced on Wednesday that it would lay off 10,000 employees.
Confirming recent rumors, the CEO of Ethereum development company ConsenSys, Joe Lubin, announced on Wednesday that the company will be laying off 97 employees. Lubin wrote in the post,
Today we need to make the extremely difficult decision to streamline some of ConsenSys’ teams to adjust to challenging and uncertain market conditions. This decision will impact a total of 97 employees, which represents 11% of ConsenSys’ total workforce.
According to the blog post, departing ConsenSys employees are entitled to generous severance benefits based on tenure and an expanded option exercise window from 12 to 36 months. The company also promised an extension of healthcare benefits in relevant jurisdictions and personalized support from an external placement agency. The post noted that each affected member would be notified by their manager.
ConsenSys, which has its headquarters in New York City and presently employs roughly 900 people, is one of several cryptocurrency businesses that have been forced to lay off staff as a result of the industry’s ongoing bear market, which is thought to have cost 27,000 jobs since April.
Lubin, in his post, emphasized ConsenSys’ financial stability by adding that the tough decision to streamline would direct the company’s strategy around its core products and the discovery of new opportunities in Web3 commerce. Lubin added that streamlining its operations was also part of its attempt to lower its operating costs.
Sharing further insight into the decision, Lubin told CoinDesk,
We’re keeping the company strong; we didn’t cut into muscle. We sort of right-sized support functions, some customer support, some internal team support, because there’s just less activity in our ecosystem right now. I expect we’ll get back to doing quite significant and surging business in the not too distant future.
Microsoft Lays Off 10,000 Employees
Microsoft announced on Wednesday that it will lay off 10,000 staff members between now and March 31 as the software company prepares for weaker revenue growth. The corporation will take a $1.2 billion charge in the second quarter of its fiscal year, which would reduce profits per share by 12 cents.
Microsoft has now become the latest software firm to step back following a few years of intense hiring fueled by a surge in the demand for online services and skilled individuals. Several tech businesses, including Alphabet, Amazon, and Salesforce, have also reduced their workforces in recent weeks.
Microsoft CEO Satya Nadella said the move was part of its efforts to slash expenses amid the current economic instability and to refocus on strategic goals like artificial intelligence. At the end of June, Microsoft had around 221,000 employees worldwide, so the reductions represent less than 5% of that workforce.