ConsenSys to lay off 14% of its employees due to restructuring
|- The firm is going to be divided into two verticles: one focusing on software development and the other on the startup investments.
- As per an official publication, the division is being made as the company was struggling to raise capital.
The Ethereum-based software technology company, ConsenSys, is laying off 14% of its workforce amid a major restructuring in its core business model. This lay-off comes as an addition to the 13% downsizing of the company’s staff that was done in December 2018. ConsenSys has not disclosed the exact number of people that will be let go.
ConsenSys will be undergoing a major restructuring, where it will be dividing the firm into two verticles - one focusing on software development and the other on the startup investments.
In a statement, the blockchain startup noted:
Over the past year, ConsenSys undertook a deep strategic review and articulated two separate strategies to grow and support the ecosystem as a software company and a separate investment company.
As per the publication, the division is being made as the company was struggling to raise capital. It will now move to raise an additional $200 million, potentially making it one of the few blockchain ventures with valuations of over a billion. ConsenSys added:
ConsenSys will operate a software business composed of several of its products optimized for a modular stack, which includes Infura, PegaSys, MetaMask, and Codefi, among several others.
The business is focused on two goals: providing developer tools and infrastructure for the developer, decentralized finance, and startup communities; and helping enterprises in the financial services, trade finance, and commerce sectors deploy and operationalize blockchain solutions.
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