(Reuters) -Blockchain technology company ConsenSys plans to cut 11% of its workforce, or 96 jobs, according to a letter from chief executive officer Joseph Lubin on Wednesday.
The job cuts will help reduce operating expenses while increasing the strength and focus of the product teams to “adjust to challenging and uncertain market conditions,” the letter said.
Layoffs at ConsenSys follow similar steps to rein in costs at crypto companies including Silvergate Capital Corp and Coinbase Global Inc at a time when a prolonged rout has pummeled the sector.
Nearly $2 trillion in value was wiped out from the crypto sector last year on rising interest rates and exacerbating worries of an economic downturn. The slump has eliminated key industry players such as Voyager Digital, Three Arrows Capital and Celsius Network.
But the bigger blow came after larger crypto exchange FTX filed for bankruptcy protection. Its swift fall has also sparked tough regulatory scrutiny of how major exchanges hold user funds.
Brooklyn, New York-based ConsenSys will provide severance packages, services of an external placement agency as well as extension of healthcare benefits to the affected employees, the letter said.
ConsenSys, founded by Joseph Lubin, is an Ethereum blockchain firm whose products help developers, enterprises and users build applications geared towards the so-called “Web3” space. Last year, the company more than doubled its valuation to over $7 billion.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Krishna Chandra Eluri)
