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ConsenSys is the Latest Company to Layoff Employees to Sustain the Crypto Winter

Joseph Lubin, the founder of ConsenSys, indicated that the reason for the move was "difficult and uncertain market circumstances."

Photo by Aaron Wilson / Unsplash

ConsenSys, the company that is the parent of Metamask, has joined the growing list of businesses who are cutting the number of employees they employ.

In a message that was published (1) on the company's site today, management revealed that some of the workforce will be let go in the near future. The blockchain company ConsenSys said that it will reduce the size of its personnel by 11%. As a result of this, 96 people would be laid off from their positions.

The Strategy Employed by ConsenSys Weather the Crypto Storm

Joseph Lubin, the founder of ConsenSys, indicated that the reason for the move was "difficult and uncertain market circumstances" referencing to the crypto currency industry.

Lubin also mentioned that the current crypto bear cycle "coincides with a very hard macroeconomic climate driven by skyrocketing inflation, sluggish economic growth, and growing geopolitical turmoil."

The creator also mentioned that the recent failure of centralized financial platforms in the crypto currency field has led to the existing mistrust and slowdown in the market.

In addition to that, he mentioned that the purpose of the decision was to lessen the amount of money spent on operations while maintaining the emphasis on the product team.

Lubin predicted that the product team will continue to expand and get access to all of the appropriate resources in the near future. In addition to this, he remarked (2),

"This hard time gives a chance to shift away from outsourcing trust to corporations that have failed repeatedly, and instead move toward a future in which decentralized technologies automate trust and empower people and communities to govern their own assets and financial destiny."

Coinbase has Ceased Operations in Japan.

It is important to note that ConsenSys is not the only company being negatively impacted by the current state of the crypto currency market. Today, the major crypto currency exchange in the United States, Coinbase, announced that it will temporarily suspend its commercial operations in the Japanese market.

The state of the market at the time, it was explained, prompted the decision to make the change. In addition, the platform announced that it will "carry out a comprehensive examination" of its operations in the area.

In accordance with the declaration, the crypto currency exchange will put a stop to accepting fiat deposits beginning this coming Friday, which is the 20th of January. In addition, withdrawal services for both fiat currency and crypto currency will be available until the 16th of February.

A previous announcement made by the American crypto currency exchange detailed the company's first round of layoffs for the current year. The company said that in order to achieve its cost-saving goals, they would be laying off close to 950 people.

The corporation implemented a decision quite similar to this one the year before, precisely around the time that Bitcoin (BTC) and other crypto currencies entered a bear market.

In the meanwhile, Bitcoin price is sustaining well above the $20,000 mark. The price is taking  stiff resistance at $21,500 and retesting an old support level. At the time of writing, it was trading at $20,868.

Chart Source: (1.1)