More Staff Cuts Are Coming at Ethereum Studio ConsenSys

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Ethereum venture studio ConsenSys is spinning out or cutting off
funding for a number of its portfolio startups, or “spokes” in
company parlance, three sources with knowledge of the situation
tell CoinDesk.
According to a report published Thursday by The Verge, roughly 50
percent of ConsenSys’ 1,200-person workforce could be let go as a
result of the move. CoinDesk was not able to independently
confirm that figure, but multiple sources have said additional staff
cuts are impending.
Thursday’s news follows the announcement earlier this month of
roughly 150 layoffs , or 13 percent of the company’s staff.
CoinDesk reported last week that more cuts were likely, citing
current and former employees.
One source told CoinDesk that ConsenSys is presenting some of
its spokes with an option to discontinue work with a severance
package or seek outside investment. The company has declined to
answer questions about how the spokes will be jettisoned.
It’s perhaps the most dramatic development at the company since
founder Joe Lubin first announced his vision for “ConsenSys 2.0″
late last month.
Whereas previously “it was good enough to do cool projects,”
Lubin told CoinDesk earlier this month, ConsenSys 2.0 will be
different: “We are going to focus much more rigorously across the
different business lines on accountability, that includes financial
sustainability.”
The decentralized company has grown rapidly, with a major hub in
Brooklyn and outposts spanning the globe. A recent profile
published by Forbes estimated the company’s annual burn rate at
over $100 million.
“At best this is just ordinary course fat trimming given the
company grew its workforce by at least 300% in the past year to
1,200 people,” said investor Jeanna Liu in a comment published by
Quartz. “At worst this could indicate internal disorg and poor
currency risk hedging (ie not converting sufficient ether to fiat).
Let’s hope it’s the former.”

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