ConsenSys – a blockchain software technology company – and Amber Group – a cryptocurrency platform based in Singapore – are the latest entities in the digital asset sector to announce staff layoffs.
The former will trim its team by approximately 11%, while the latter reportedly plans to reduce its Hong Kong division by 50%.
Adjusting to ‘Uncertain Market Conditions’
Joseph Lubin – CEO of ConsenSys – his organization made the “extremely difficult decision” to lay off 96 of its employees, or 11% of the total workforce. He outlined the current challenging macroeconomic environment (driven by surging inflation and geopolitical unrest) as the main reason for the amendments.
Lubin assured that all departing individuals will receive “generous severance packages,” extension of healthcare benefits, and support with their transition to another firm.
The executive argued that the layoffs will not divert ConsenSys from its main goals: to keep developing the crypto wallet METAMASK and the Web3 API provider Infura.
“We will also pursue innovative new offerings to empower developers and creators to thrive in Web3, grow Web3 commerce and DAO communities, and amplify the decentralized identity and verifiable credentials ecosystems,” he added.
Lubin opined that the ongoing uncertainty could be a great opportunity for the industry to move from “outsourcing trust” to a future where decentralized systems enable individuals “to exercise control over their own digital assets.”
Amber Group Dismisses More People
The cryptocurrency platform, backed by the investment giant Temasek Holdings, will reportedly 40 Hong Kong-based employees (around 50% of that division) to endure the crypto winter. The departing members are mainly IT specialists and auditors.
A person familiar with the matter informed that Amber Group moved its office from Hong Kong’s city center to a cheaper area in Causeway Bay and delayed payments to third-party vendors.
Amber Group has previously stated it is “anticipating and preparing itself for an extremely conservative position so that it can go the long mile, even if it means having to go back to core business fundamentals during this period.”
2022 has been quite destructive for the platform. It dismissed 5-10% of its headcount in September and continued the spree in December. Amber Group also applied salary reductions and annulled some of its collaborations, including the one with the popular English soccer club – Chelsea FC.
The most shocking event for the company was the unexpected death of the Co-Founder – Tiantian Kullander. The 30-year-old mysteriously passed away in his sleep in November.
The demise of FTX also harmed Amber Group’s operations. The latter assured it had no exposure to the collapsed exchange or Alameda Research, but it was an “active trading participant” in FTX.
Amber Group secured a $300 million fundraiser in December and vowed to distribute the capital to clients affected by the aforementioned crash.