Consensus consumes 20% of the total workforce.
Accord cuts 20% of workforce due to economic and regulatory issues. CEO Joe Lubin criticized the SEC's actions as a harmful “abuse of power.” The company aims to improve decentralization and transition to a “Network State”.
Consensys, a pioneering force in blockchain technology and the main backer of the Ethereum network, recently announced a 20% reduction in its workforce.
Affected employees will receive severance packages, extended health care benefits and severance services to support their transition.
The decision comes from a combination of challenging macroeconomic conditions and increasing regulatory pressure in the cryptocurrency sector, with Consensys leadership citing US Securities and Exchange Commission (SEC) “abuse of power” as a major reason.
In a recent blog post, founder and CEO Joe Lubin expressed frustration over the financial and operational pressures imposed by ongoing regulatory measures.
Lubin said, “Many of the cases with the SEC, including ours, reflect the SEC's abuse of power and Congress's failure to fix the problem, meaning meaningful jobs and productive investment. He added that actions from the government would cost crypto companies millions in legal fees and lost business opportunities, which would stifle innovation in a sector that is undergoing mainstream adoption.
The legal battles between Consensys and the SEC focused primarily on the regulator's claims that Consensys operated as an unregistered broker, specifically through MetaMask's services.
According to the SEC, the company's operations may include securities offerings and sales that require formal registration.
The dispute escalated when Consensys filed a counterclaim against the SEC, alleging regulatory violations. The company argues that the SEC's aggressive stance, designed to bring more control over decentralized financial products, is a “power grab” against Ethereum.
The stance aligns with many other crypto companies that have opposed SEC enforcement, including Coinbase and Grayscale, marking a major industry push against unclear regulations.
Despite these challenges, Consensys maintains a strong market position, continuing to focus on Ethereum-based products such as MetaMask and Infura, which have become important tools in the blockchain ecosystem.
To navigate this uncertain landscape, the company is taking steps to streamline its operations, positioning itself for potential and long-term sustainability in a growing, often volatile industry.
Looking forward, Consensus aims to promote decentralization within its own structure. Consensys sets this new direction with tools like MetaMask, evolving itself from a centralized company to a “Network State” by evolving its products into protocols. This shift could be a decentralized, Web3-native future, where small, efficient companies drive the economy and drive innovation.
Through these structural changes, Consensys seeks to maintain its commitment to Ethereum's mission by adapting to the ever-changing regulatory and economic environment.
