Blockchain co StarkWare lays off 30% of workforce

StarkWare, one of the most important blockchain companies to have emerged in Israel over the past decade, is implementing a large-scale round of layoffs as part of a change in direction in its operations. According to sources, about 30% of the workforce are being dismissed, although the announcement sent by CEO and founder Eli Ben-Sasson to employees did not provide exact numbers.

StarkWare was founded in 2017 and has raised hundreds of millions of dollars from prominent investors over the years, at a valuation of about $8 billion at its peak. The company has developed technology that allows operations to be carried out on blockchain networks faster and cheaper, while maintaining a high level of security. Simply put, it is a method that allows “compressing” large amounts of transactions and proving that they were carried out correctly, without revealing all the information and without overloading the network itself. This technology, known as zero-knowledge proofs, is considered one of the most promising in the blockchain world, and StarkWare was one of the companies that led its development. Among other things, the company developed the StarkNet network, an infrastructure that allows blockchain applications to operate on a broad scale.

But now, after years of investment in infrastructure and research, the company is seeking to change the focus of its activities. As part of the move, it is cutting its workforce and reorganizing operations into smaller, more flexible teams, according to the company, to speed up development and move more quickly towards revenue-generating products.

“The company is adjusting its strategy”

Ben-Sasson himself referred to the change in the message he sent to employees, in which he wrote that the company is “adjusting its strategy, with a clear goal of leading the blockchain field.” At the same time, he admitted that despite the technological leadership and achievements, “Infrastructure alone does not win the game,” and added that the company is not yet realizing its full potential. “We can do more,” he wrote, referring to the need to shift from a focus on infrastructure to developing products and applications.

StarkWare’s move also also fits into a broader trend in the cryptocurrency market, in which many companies built around deep technology innovation are now also required to prove sustainable business models, especially because of changing market conditions and investor pressure.

Blockchain scalability co Starkware raises $75m

StarkWare said, “The company has embarked on a process of cutting its workforce and shifting from a focus on infrastructure and research to promoting revenue-generating products. After years of developing advanced infrastructure for blockchain applications (StarkNet), the company is reducing its workforce and organizing its activities into small, flexible teams that can operate quickly. The entire move reflects a change in the nature of the activity: from a company that is run almost like a research lab to a company that places full emphasis on profit-generating products.”

Published by Globes, Israel business news – en.globes.co.il – on April 14, 2026.

Source link