Layoffs Hit Consensys, dYdX Despite Crypto Market Strength
Even as Bitcoin continues its historic ascent towards new all-time highs, the crypto industry is grappling with persistent challenges.
Recent layoffs at prominent players, Consensys and dYdX, highlight the ongoing impact of regulatory uncertainty and economic volatility.
Consensys Cuts 20% of Workforce
On Tuesday, Consensys, the company behind the popular Ethereum wallet MetaMask, announced a significant workforce reduction of 162 employees across all departments, or approximately 20%.
In a post on X, CEO Joe Lubin attributed the decision to ongoing legal battles that have strained the company's resources.
3/5
— Joseph Lubin (@ethereumJoseph) October 29, 2024
To stay competitive, we need to reshape ourselves to be more agile, more effective, and even higher-performing.
Today, we are making the tough but prudent decision to streamline our operations to position Consensys for ongoing rapid innovation, long-term sustainability…
While the exact nature of these legal challenges remains undisclosed, it's widely speculated that they are related to increasing regulatory scrutiny from the US Securities and Exchange Commission (SEC).
Lubin acknowledged the difficult decision, stating, "The broader macroeconomic conditions over the past year and ongoing regulatory uncertainty have created broad challenges for our industry, especially for US-based companies."
dYdX Restructures, Cuts 35% of Jobs
In a separate development, decentralized exchange dYdX's CEO Antonio Juliano announced a 35% reduction in its workforce, in a blog post titled "Letting Go," on the company's website – the classic "we're all family here" farewell after slashing a third of the workforce.
He explained that the layoffs were necessary to "realize the company we’ve built is different from the company dYdX must be."
I’ve made the incredibly difficult and sad decision to move on from 35% of the dYdX team
— Antonio (@AntonioMJuliano) October 29, 2024
More thoughts on why and what this means tomorrow, but for today a goodbyehttps://t.co/ssFAjXPE0J
While Juliano's statement suggests a strategic shift, industry observers believe that regulatory pressures may also be playing a role. The timing of the layoffs, coinciding with Consensys' announcement, raises questions about whether dYdX is facing similar challenges.
Juliano, who rejoined the firm he founded after a short time away, managed to turn a mass layoff into a Hallmark card moment: “We’ve created an amazing community where we care about each other as people, not just ‘coworkers’”— too bad that community is now 35% lighter.
"Thank you for the long awaited product launches, memorable team offsites, nights on the beach in the rain, and nervous first interview we shared. Thank you for leaving a part of your self with me and dYdX. Fly on," Juliano added, like a proud mother.
In the end, the layoffs at both companies are a striking reminder that even in favorable conditions, companies will prioritize bottom lines over their people. Here’s to hoping those cherished moments provide some warmth during what is undoubtedly a cold farewell.