Consensys, the company behind the widely used MetaMask crypto wallet, has announced plans to lay off more than 160 employees across all divisions, citing economic pressures and regulatory challenges.
In a blog post, founder and CEO Joe Lubin announced the news, citing expensive legal disputes with the U.S. SEC and macroeconomic challenges as major contributing factors.
Cuts Over 160 Jobs Amid Regulatory & Economic Challenges
Lubin expressed frustration with the SEC’s stance on digital asset regulation, calling the agency’s actions an “abuse of power.” He added that such regulatory challenges have placed a significant financial strain on crypto companies, costing millions in legal fees and impacting industry jobs.
The SEC’s lack of regulatory clarity, according to Lubin, has hampered the development of projects like Consensys, which he founded in 2014 to support Ethereum-based applications.
The company, initially based in Brooklyn and now headquartered in Texas, has been central to the Ethereum ecosystem. Its flagship product, MetaMask, offers users a decentralized wallet for holding Ethereum-based tokens and accessing various blockchain services.
However, Consensys’s expansion has faced ongoing regulatory hurdles, leading Lubin to file a lawsuit against the SEC earlier this year. While a federal court dismissed his preemptive suit, a related case filed by the SEC remains active.
Affected Employees to get Severance Packages
Lubin acknowledged in a recent interview that the layoffs will hit areas such as business development and product, affecting roughly 162 out of 828 employees. Consensys is offering severance packages to impacted workers that include extended healthcare benefits and career support in spite of the reductions.
Lubin also emphasised Consensys’s long-term goal of developing into a decentralised “Network State,” which is consistent with blockchain technology’s philosophy. Notwithstanding the difficulties, the business intends to carry out its objective of assisting the Ethereum ecosystem while negotiating a changing regulatory environment.