Ethereum News Today: Consensys reduces staff by 7% in third round as crypto sector adapts to regulatory shifts and economic pressures.

Consensys, a leading software company in the Ethereum ecosystem, has announced a workforce reduction of 49 employees, representing 7% of its total staff. This marks the firm’s third round of layoffs since 2022, following cuts of 11% in 2023 and 20% in 2022. The restructuring effort, described as part of a broader realignment of priorities, coincides with the company’s recent acquisition of Web3Auth, a startup with approximately 30 employees. Consensys emphasized that while certain roles will be eliminated, hiring will continue in select areas. The company’s largest office, located in Brooklyn, remains a key operational hub.

The layoffs come amid a challenging environment for crypto firms, even as the U.S. regulatory landscape has shifted under the second term of President Donald Trump. Earlier this year, the U.S. Securities and Exchange Commission (SEC) dropped a high-profile case against Consensys, which had previously accused the company of operating as an unregistered broker through its staking services. The dismissal of the case signaled a retreat from the SEC’s aggressive enforcement approach toward the crypto industry, reflecting the administration’s more favorable stance toward digital assets. Despite this regulatory easing, Consensys continues to navigate macroeconomic pressures and evolving market demands.

Founded by Ethereum co-creator Joe Lubin, Consensys operates MetaMask, one of the most widely used digital wallets for managing crypto assets and interacting with decentralized applications. The company’s strategic moves extend beyond workforce adjustments, including a recent partnership with SharpLink Gaming, a publicly traded firm chaired by Lubin. SharpLink has been accumulating Ether to bolster the Ethereum ecosystem and enhance token value. The firm also secured a $425 million private investment in a public equity deal, with Consensys leading the round. These initiatives underscore a broader effort to streamline operations while pursuing expansion opportunities.

The restructuring aligns with a growing trend of crypto firms preparing for potential public listings. Following the June IPO of stablecoin issuer Circle, companies such as Kraken, Gemini, and BitGo are reportedly exploring similar strategies. For Consensys, the focus on profitability and operational efficiency appears to be a key component of its long-term strategy. While the company is reducing headcount, it remains active in acquisitions and innovation, aiming to strengthen its position in the Ethereum ecosystem. The layoffs highlight the sector’s ongoing volatility, even as some players benefit from regulatory clarity and market optimism.

The latest round of job cuts underscores the industry’s cyclical nature, where firms must balance growth ambitions with financial prudence. Consensys’ approach reflects a broader pattern of adaptation, with companies prioritizing core competencies and cost management amid shifting regulatory and economic conditions. As the crypto industry continues to mature, such strategic adjustments are likely to remain a defining feature of its evolution.