ConsenSys, the New York-based Ethereum incubator may be laying off further staff amid the coronavirus crisis.
A spokesperson from the firm revealed that Consensys is looking to layoff 14% of its current workforce, which is around 90 people. The crisis may have been fueled by the ongoing pandemic, forcing many firms to go on cost-cutting campaigns, including staff layoffs.
However, this is not the first time that the firm is looking to cut short its workforce to manage costs. They went through similar layoffs back in February by almost the same percentage. And prior to that, the firm made further layoffs in late 2018 during the Consensys 2.0 restructuring.
The rumours about layoffs surfaced after a Monday town hall meeting. The currently forecasted layoffs would bring the company headcount to around 550 from the 850 which they started with this year.
A spokesperson from the firm commented on the current layoffs saying:
“The global COVID-19 pandemic has deeply impacted the world’s health and livelihood. ConsenSys has carefully analyzed its business in relation to what is occurring globally.
Like most of its peers, the company is seeing extraordinary uncertainty in the market, with businesses rebalancing priorities and reevaluating timelines.”
The spokesperson also assured that the layoffs were being conducted to manage underlying costs. However, a lot of meticulous planning has gone into it, ensuring that the key functions are maintained to ensure timely development of key products and solutions. ConsenSys would offer laid off staffs with 2 months of severance pay and career transition services.
Talking about the firm’s current focus of work, the company noted that they are currently looking into:
“crisis-related opportunities such as Central Bank Digital Currencies (CBDCs), emergency loans disbursement solutions, supply chains for personal protective equipment (PPE), and related identity solutions.”
Industries Laying Off Staff, and Cost Cutting To Get Through The Pandemic
The coronavirus pandemic has brought the whole world to a standstill. With most industries shutting down, laying off their workforce or going through complex cost-cutting procedures. The aim is to survive through the pandemic while ensuring the key aspects of their business is up and running.
Consensys is not new to layoffs as mentioned above it had done two layoffs prior to the current one for different reasons, however, the current layoffs are purely to manage cost amid the COID-19 crisis.