Blockchain unicorn StarkWare cuts dozens of jobs in strategic shift
The Israeli firm said it has “begun a process of reducing its workforce and shifting its focus from infrastructure and research to revenue-generating products.”
StarkWare is laying off dozens of employees as part of a broader organizational restructuring. Following the cuts, the company is expected to employ around 170 people in Israel and globally.
The decision to reorganize came just days after Chief Product Officer Avihu Levy drew significant attention online for proposing a solution to Bitcoin’s quantum vulnerability. The approach aims to make Bitcoin holdings resistant to potential quantum computing threats without requiring changes to the core network. His post garnered approximately 1.7 million impressions, an unusually high level of engagement for technical cryptographic research.
The restructuring is intended, in part, to establish a new business unit under Levy’s leadership. The move also comes amid estimates that the company has experienced a decline in revenue from its blockchain network, its primary source of income.
In its last funding round (Series D) in 2022, StarkWare was valued at approximately $8 billion. Investors included Sequoia Capital, Paradigm, Coatue, and Vitalik Buterin.
The company, which has raised over $260 million to date, was founded by Eli Ben-Sasson, who now serves as CEO, alongside Uri Kolodny, Michael Riabzev, and Alessandro Chiesa. Kolodny stepped down as CEO in 2024 for personal reasons.
In a statement, the company said: “The company has begun a process of reducing its workforce and shifting its focus from infrastructure and research to revenue-generating products. After years of developing advanced infrastructure for blockchain applications (StarkNet), it is reorganizing into smaller, more flexible teams that can operate more quickly. The move reflects a broader change in the nature of its operations, from a research-heavy organization to one focused on delivering profit-generating products.”
