[ad_1]
Business study Ethereum ConsenSys is extinguishing or cutting funding for a number of startups in its portfolio, or "spokesman" in the corporate language, three sources with knowledge of the situation tell CoinDesk.
According to a report published Thursday by The Verge, around 50 percent of the 1,200-person workforce of ConsenSys could be left to go because of the move. CoinDesk was not able to confirm this figure independently, but several sources said that further staff cuts are imminent.
Thursday's news follows the announcement at the start of this month of around 150 layoffs, or 13 percent of the company's staff. CoinDesk reported last week that further cuts were likely, citing current and former employees.
One source told CoinDesk that ConsenSys presents some of its leads with the option of stopping work with a settlement package or looking for external investments. The company refused to answer questions about how the spokes will be expelled.
It is perhaps the most dramatic development of the company since founder Joe Lubin announced his vision for "ConsenSys 2.0" at the end of last month.
While previously "it was nice to do interesting projects", Lubin told CoinDesk at the beginning of this month, ConsenSys 2.0 will be different: "We will focus much more strictly between the different lines of business on responsibility, which includes financial sustainability. ".
The decentralized company has grown rapidly, with an important hub in Brooklyn and outposts all over the world. A recent profile published by Forbes estimated the company's annual burn rate at over $ 100 million.
"At best this is just a regular fat cut as the company has increased its workforce by at least 300% in the last year to 1,200 people," said Jeanna investor Liu in a comment published by Quartz. "In the worst case this could indicate internal disorganization and poor exchange rate hedging (ie not converting a sufficient quantity of gas into fiat) .We hope it will be the first."
Leigh Cuen contributed to the report.
ConsenSys image through CoinDesk archives. Photo credit: Michael del Castillo
[ad_2]
Source link
