ConsenSys, blockchain software technology provider company is planning to layoff 13% of it’s workforce, owing to poor market conditions. The company founded by Joseph Lubin is said to be re-assessing on it’s priorities and it’s processes.
The company sent out a mail to its employee on Thursday:
“Excited as we are about ConsenSys 2.0, our first step in this direction has been a difficult one: we are streamlining several parts of the business including Solutions, spokes, and hub services, leading to a 13% reduction of mesh members.”
The company has a total of 1200 employees across different different locations from New York to Singapore and laid of 100 employees. The company has an annual burn rate of $100 million and more than 50 ventures under the ConsenSys umbrella.
Lubin in an interview with Breaker told:
“We’re going to get a lot more rigorous in terms of milestones and timetables…dissolving projects if we’ve come to the conclusion that our earlier assumptions were incorrect.”
The market crash has severely affected the crypto and blockchain ecosystem Joseph Lubin’s fortune has dropped to $5 billion in early 2018 to less than $1 billion. With current market conditions, ConsenSys is unlikely to break even in near terms with their current burn rate.