StarkWare, an Ethereum layer-2 scaling network developer, has announced layoffs as it shifts its focus towards revenue generation and greater efficiency. The company, known for its work on zero-knowledge proofs and the Starknet platform, is restructuring to adapt to changing market conditions.
What happened
StarkWare is consolidating its team into two units focused on business development, engineering, product, and go-to-market strategies. This restructuring involves layoffs as the company seeks to become more agile and efficient.
How many employees affected
The exact number of employees affected by the layoffs has not been disclosed.
Why layoffs happened
The layoffs are a result of StarkWare's strategic pivot to prioritize revenue generation. CEO Eli Ben-Sasson stated that the company had become "too big and too inefficient" and that the changes were necessary to move faster and focus on product-market fit through experimentation.
Company background
Founded eight years ago, StarkWare has developed an Ethereum layer-2 scaling network leveraging zero-knowledge proofs. The Israel-based firm has raised $287 million across eight funding rounds. It has positioned itself as an infrastructure specialist, developing solutions to extend Bitcoin's use in decentralized finance.
Industry impact
The layoffs at StarkWare reflect a broader trend in the crypto industry, with companies adjusting their strategies to focus on sustainability and profitability. Starknet's native token has declined 75% over the past year. Competitors like Optimism have also recently reduced their headcount.
What's next
StarkWare will focus on "doing fewer things excellently" and finding product-market fit. The company aims to operate more like a startup, adapting to the challenges of the current market environment.
Source: decrypt.co