Ethereum co-founder Joseph Lubin and CEO of blockchain startup ConsenSys — recently laid off 50-60% of his workforce to cut costs, but insists that 2019 looks very promising.
Citing a source familiar with the matter, the Verge reports that ConsenSys is spinning out startups it previously backed, some of them without financial support. This will reportedly impact the ConsenSys’ workforce, especially its internal incubator Consensys Labs.
ConsenSys operates a startup incubator called ConsenSys Labs that is believed to be home to around 36 startups, with each employing between 5 and 50 staff.
The report comes after a ConsenSys letter to staff, in which the company announced its plans to streamline and toughen its business style amid an increasingly “crowded” competitive blockchain space.
According to the report, ConsenSys representatives did not deny the impending layoffs when approached for comment, adding that the company was “determining a path forward [for each project], whether that will be internal as part of ConsenSys 2.0, or as an external entity.”
Lubin said he has seen a lot of FUD due to the prolonged downturn, but warned that people on the outside looking in shouldn’t draw conclusions about ConsenSys based on its current woes.
“We are creating transitions for some projects that we believe don’t fit as well into the ConsenSys 2.0 vision as they did in ConsenSys 1.0, and we are working on ways to continue to support these projects going forward as we sketch plans for a ConsenSys alumni network.”, tweets Joseph Lubin.