StarkWare plans layoffs and restructuring into two divisions to adapt to declining revenues and streamline operations.
StarkWare, known for its layer two network Starknet, is set to undergo significant changes including staff layoffs and a reorganization into two distinct divisions, as revealed by CEO Eli Ben-Sasson.
"StarkWare is adapting its strategy, with a clear goal – to lead blockchain. We must change how StarkWare operates to achieve our full potential," Ben-Sasson stated.
While the exact number of layoffs and a timeline were not disclosed, Ben-Sasson highlighted that these adjustments aim to streamline operations and enable the company to operate more like a startup, enhancing its ability to meet market demands swiftly.
The restructuring will separate StarkWare into an applications and revenue division, led by Chief Product Officer Avihu Levi, and a redevelopment division for Starknet, managed by Tom Brand, who will assume the role of general manager. Levi is known for his recent initiative on quantum-resistant Bitcoin transactions, which will now serve as a foundation for their upcoming product development.
Additional leadership changes include Ran Grinshtein taking on human resources, security, and IT oversight, while Gideon Kempfer will step into a chief architect role. Chief Operating Officer Oren Katz plans to resign but will remain until the end of April, with Catherine Kirkpatrick Boss continuing to lead the legal department.
Financial Challenges
The company’s revamp comes as StarkWare faces declining revenue, with figures dropping from a peak of $6 million monthly at the close of 2023 to just $48,000 in the first half of 2026. This downturn mirrors a broader slump across the cryptocurrency market, particularly following the Dencun update, which affected layer two fee revenues.
Currently, Starknet has a total value locked (TVL) of $241 million, down from a high of $330 million in January 2026. The industry's struggles have also prompted significant layoffs at major players like Crypto.com and Algorand this year, with similar trends observed at other firms in the sector.
