ConsenSys, a decentralized exchange built on the Ethereum blockchain is planning to cut down its staff size. A person familiar with the issue said the firm could sack 100 or more of its staff.
A report from Coindesk, however, revealed that the exact number of employees that will be dismissed is not yet known because the reduction is yet to be finalized.
While the possible reasons for the staff reduction are yet to be disclosed by ConsenSys, it is worth noting that the crypto winter and the volatile crypto market may be major contributors to the cut down of staffing.
Other possible reasons include; a decrease in trading volume or user engagement on the platform, a drop in the value of cryptocurrencies, which could result in lower profits for the exchange, a shift in the company’s overall strategy or business direction, and regulations and compliance issues that may be costly to maintain.
As per innovations in the industry, ConsenSys announced in December that its users can now buy crypto through MetaMask and explore other Web3 services through the integration of Paypal into its platform. It is worth noting that MetaMask will be the first Web3 wallet to use PayPal to improve on-ramp transaction success.
Crypto Entities Cut Down on Employee Size
The prolonged crypto winter appears to have taken a toll on exchange platforms, as many of them have now adopted a new trend of dismissing their employees as an adaptive mechanism to ensure long-term viability.
The CEO of SuperRare Labs, John Crain recently announced that his firm had plans to reduce its staff size by 30% due to the ongoing crypto bear market in the industry. Crain stated that SuperRare, an NFT marketplace had limited resources to sustain the rapid growth of employees.
I have some tough news to share: pic.twitter.com/iLDKqgyhQa
— SuperRare John 💎 (@SuperRareJohn) January 6, 2023
Crain admitted to having made an error by employing too many employees that the firm could not sustain. He, therefore, said he was making efforts to correct his errors through the reduction of staff size.
Coinbase crypto exchange has also announced a reduction of its employees by approximately 20%. The firm said the staff reduction is part of a restructuring process the firm hopes to complete by the end of the second quarter of 2023.
Coinbase stated in a filing submitted to the US Securities and Exchange Commission (SEC) that it was responding to the ongoing crypto conditions that are affecting the crypto industry in general.
