Starkware Slashes Staff Splits Into Two Units
Starkware Slashes Staff Splits Into Two Units
Starkware slashes staff and splits into two units after a 99% revenue collapse. The company is restructuring to generate revenue.
Background and Restructuring
Starkware announced staff cuts and an internal reorganization into two independent business units, in response to the more than 99% drop in revenue from its Starknet network since the peak reached in late 2023. The changes were communicated by co-founder and CEO Eli Ben-Sasson during an all-hands meeting with employees.
Reasons Behind the Restructuring
Ben-Sasson explained that the company has become “simply too large” for its new strategy and that it needs to return to a startup mindset to accelerate product-market fit. He did not specify the exact number of employees affected or the timeline of the process, though he confirmed that Starkware will offer severance packages that exceed legal and contractual requirements in most jurisdictions.
Starkware's New Direction
The new structure divides the company into a revenue-focused applications unit and a renewed Starknet development unit. The first will be led as general manager by Avihu Levy, current Chief Product Officer, and the second by Tom Brand, current Head of Product. Both units will have their own engineering, product, and go-to-market teams.
Leadership Changes
- CFO Ran Grinshtein will take over supervision of finance, human resources, security, and IT.
- Gideon Kaempfer, current Head of Core Engineering, will become chief architect reporting directly to Ben-Sasson.
- COO Oren Katz requested his departure and will remain in the role until the end of April.
Key Factors and LSI Terms
The drop in Starknet revenue is partly explained by a sector-wide dynamic: Ethereum’s EIP-4844 upgrade, implemented in March 2024, drastically reduced fee revenue across all Layer 2 networks, including blockchain scaling solutions and decentralized finance (DeFi) platforms. Even so, Starknet’s TVL exceeds $200 million, showcasing its total value locked (TVL) and crypto market presence.
Key Takeaways
- Starkware is restructuring into two independent business units after a 99% revenue collapse.
- The company aims to generate revenue through products that utilize its technological superiority.
- Avihu Levy will lead the new applications unit, focusing on crypto transactions and quantum-resistant bitcoin.
- Starknet’s TVL exceeds $200 million, despite the revenue drop.
Frequently Asked Questions
What is the reason behind Starkware's restructuring?
The reason is the 99% drop in revenue from its Starknet network since the peak reached in late 2023.
Who will lead the new applications unit?
Avihu Levy, current Chief Product Officer, will lead the new applications unit.
