Ethereum’s ConsenSys Announces Staff Cuts By 14% While Also Acquiring Broker-Dealer

The Ethereum development studio ConsenSys is doing a major restructuring of its business and will cut staff by 14%, as it aims to raise $200 million.

The Brooklyn-based company announced at a meeting with its entire staff from Tuesday that changes are about to be made. When inquired by the press about how many people are going to be fired more exactly, or how many employees it has, it gave no answer. This is what a statement from the firm reads:

“In the coming months, ConsenSys will finalize the transition from its venture production model and spin out a number of its internally funded projects into the ConsenSys Investments portfolio.”

Prioritizing the Development of Some Ethereum Platforms

The intention is to bring leading infrastructure platforms in the Ethereum (ETH) ecosystem to the forefront in development processes. ConsenSys said they will,

“operate a software business composed of several of its products optimized for a modular stack.”

There are sources saying Codefi, MetaMask, Pegasys and Infura are going to receive the most attention.

ConsenSys Investments Will Continue to Exist

The venture aspect will still be alive under the ConsenSys Investments banner. They said liquid digital assets, early-stage equity and strategic opportunities will be in the spotlight. It added the “Solutions” arm, which is enterprise-focused, is going to provide directly for the software business.

13% of the Staff Laid Off Back in 2018 Too

During the ConsenSys 2.0 restructuring from 2018, the company laid off around 13% of its employees. It seems the recent action was a result of thorough evaluations of the projects during the 2019 year. In the meantime, it’s attempting to break into the $3.8 trillion municipal debt market.

A separate announcement made on Tuesday says it has acquired Heritage Financial Systems, the famous broker-dealer, in an attempt to become both a broker-dealer and advisory firm. ConsenSys thinks blockchain technology can make things easier when it comes to tokenized bond offerings, especially since it helps issuers sell smaller denominative securities, or mini bonds.

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Author: Oana Ularu

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