Zero-knowledge scaler StarkWare is cutting jobs and restructuring its business as it shifts away from infrastructure development toward revenue-generating products.
CEO Eli Ben-Sasson said in internal remarks that the company would split into two business units and reduce staffing to operate faster and more efficiently, with one unit focusing on applications and the other on Starknet development.
Ben-Sasson said the company would take a “startup mode” approach, prioritizing fewer initiatives with greater revenue potential, while warning that the job cuts would impact employees across the organization. StarkWare did not disclose how many employees would be affected by the cuts.
The move reflects broader restrictions at cryptocurrency companies, which are cutting staff and narrowing priorities in a bid for better product-market fit, greater monetization and leaner operations. Messari, Algorand Foundation and Crypto.com announced cuts in March.
StarkWare argues that technical advantage must translate into revenue
Ben-Sasson said StarkWare’s next phase will focus on turning its technology into “meaningful revenue” and “meaningful usage,” arguing that the company can no longer rely primarily on third-party blockchains or third-party teams to prove the value of its stack.
Ben-Sasson said the company will focus on “fewer things” and prioritize products with revenue potential that can be built solely on its technology stack.
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“We intend to achieve this by innovating not just in infrastructure, as we have done so far, but across the entire infrastructure and product stack,” he said.
Cryptocurrency layoffs continue as companies tighten strategy
StarkWare’s cuts follow other recent layoffs in the cryptocurrency sector as companies narrow their priorities and transform their businesses. On March 17, Messari announced layoffs and a leadership change as the company dives deeper into artificial intelligence-based research and data tools for institutions.
On March 19, the Algorand Foundation said it would lay off 25% of its employees, citing macroeconomic uncertainty and the broader downturn in the cryptocurrency industry. The organization said the move was intended to better align resources with its long-term business, technology and ecosystem priorities.
On the same day, Crypto.com also announced a 12% job cut as part of a broader push towards artificial intelligence. The exchange said the layoffs are related to the integration of artificial intelligence across the company and the decision to prioritize resources around key growth areas.
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