Bitcoin Nears AllTime High But Industry Faces Wave of Layoffs and Restructuring Consensys and dydX Both Lay Off 2035 of Employees
The developer of the MetaMask wallet, Consensys, has recently laid off approximately 20% of its employees. This follows reports of high-level departures from its Layer 2 public chain, Linea, raising concerns about Consensys’s future development. Founder and CEO Joseph Rubin admitted that the layoffs were primarily attributed to adverse macroeconomic factors and the legal expenses incurred from the prolonged battle with regulatory agencies, necessitating cost-cutting measures.
Consensys, which incubates MetaMask and Linea, faces an uncertain future
Founded by Joseph Rubin in 2014 in Brooklyn, Consensys is best known for the widely used MetaMask wallet. In recent years, attention has also turned to the yet-to-launch Layer 2 project, Linea, along with other notable products such as Wallet Guard. In a previous article, we noted that the core team of Linea, including its founder and business development personnel, left in mid-June this year. Although the founder stated that the departure was a peaceful separation due to differing views on the roadmap, it still left the community feeling anxious.
Consensys embroiled in legal disputes, possibly leading to layoffs
Recently, Joseph Rubin candidly revealed on Twitter that Consensys would be laying off 20% of its workforce. He attributed this decision to the uncertainties in the macroeconomic landscape and regulatory agencies over the past year, noting that these factors have had a significant impact on American companies. He positioned the layoffs as a necessary step for the long-term sustainable development and decentralization of Consensys, stating that the organization needs to restructure to enhance its competitiveness. In fact, the regulatory uncertainty he referred to specifically pertains to Consensys’s legal struggles with the SEC, and currently, Consensys appears to remain in a disadvantageous position.
Bitcoin market remains hot as dYdX announces 35% layoffs
Coincidentally, just as Bitcoin approached its historical high, the decentralized derivatives trading platform dYdX also announced a 35% workforce reduction. Although the article employed various rhetorical devices to describe the difficulty of this decision, dYdX did not specify the reasons for the layoffs. It merely indicated that there were conflicts between dYdX’s development and roadmap, and that this choice was made to achieve a clearer vision and greater enthusiasm in creating remarkable outcomes.
