Metamask parent company, Consensys, lays off 160 employees; blames U.S SEC for abuse of power

Web3 firm and Metamask’s parent company Consensys announced on its blog on October 29 that it was laying off 160 employees across several departments, equating to about 20% of its workforce. The company explained that the massive fees it incurred during its legal battles with the U.S. Securities and Exchange Commission, plus macroeconomic factors, contributed to the decision. 

The company appreciated the laid-off employees’ contribution to Consensys and the web3 industry’s success. Consensys still promised employees severance depending on their tenures, an extended exercise window of 36 months, extended healthcare benefits, and outplacement services.

Consensys pointed out the macroeconomic factors affecting Web3, including rising interest rates, tightening liquidity, worrisome inflation rates, and more. The company further highlighted the commission’s contribution to the crypto industry’s lack of a clear regulatory framework. According to Consensys, the lack of clarity makes it unnecessarily hard for investors, developers, businesses, and others to engage with the markets. 

Additionally, the company highlighted that every legal battle by crypto companies with the U.S. SEC represents productive investment and employees’ jobs lost due to the commission’s abuse of power. The blockchain firm also said that Congress has done nothing to stop the commission’s misconduct. Consensys further expressed worry that the government’s attack on the industry might cost more companies that undergo investigation or end up sued.

Consensys still hopes to maintain financial stability

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Even in the face of these challenges, our ecosystem is on the precipice of becoming a globally systemically defining force, with web3-native companies making great strides and more traditional companies leaning into web3.

— Joseph Lubin (@ethereumJoseph) October 29, 2024

Consensys assured users that its business was still strong and resilient despite the growing macroeconomic issues. The company revealed in its blog that it was dedicating more time to refining and refocusing its business strategy and objectives. 

The Web3 firm confirmed that such reasons led to the company’s decision to right-size. According to Consensys, the reforms will allow the company to navigate the markets more easily. The company also hopes that the change in strategy will help it achieve long-term sustainability. 

Joe Lubin appreciated the changes recorded in the web3 industry. According to Lubin, the web3 industry is about to go mainstream, with traditional companies also looking to join the space.

The Consensys CEO expects that monolithic companies will lose their touch while opening doors for smaller companies. Lubin also predicted that smaller companies will take advantage of emerging technologies, including AI.

Metamask drives web3 development

Lubin reiterated Consensys’s mission to drive innovation in Web3, mentioning that Linea and Metamask were at the forefront of Web3 development. According to the firm’s CEO, Metamask has been driving secure asset storage while empowering individuals globally. The CEO also confirmed the wallet’s contribution to Web3 innovations as developers experimented on MetaMask.

The Consensys founder also highlighted some changes users can expect on the platform to encourage web3 adoption. Users can expect improvements in the platform’s UX and UI and MetaMask’s multi-chain capabilities. MetaMask will also receive additions, such as the recent MetaMask card, to improve the platform’s utility. 

Consensys further insisted on its focus on decentralization, a core mission of the Ethereum project. As such, the company hopes to progressively decentralize its products while focusing on decentralizing its platform. Lubin said that the company’s mission was to evolve into a Network State.