StarkWare Cuts Staff and Splits Into Two Units in Revenue-Focused Pivot
StarkWare, the zero-knowledge cryptography firm behind the Starknet blockchain, is cutting staff and reorganizing into two independent business units as it shifts focus from infrastructure development to building revenue-generating products.
CEO and co-founder Eli Ben-Sasson announced the changes during an all-hands meeting Monday, telling employees the company was “simply and sadly too big” for its new direction. The number of affected employees and a timeline for the reductions were not disclosed.
The restructuring reflects a broader inflection point for ZK-rollup developers — firms that compress transaction data off-chain to scale blockchains — who built technically advanced infrastructure during the last cycle but now face pressure to demonstrate sustainable business models. For StarkWare, which raised at a $8 billion valuation in 2022, the pivot signals that technology leadership alone has not translated into the commercial traction investors expect.
Under the new structure, current CPO Avihu Levy will serve as general manager of a revenue-focused applications unit, while Head of Product Tom Brand will lead a revamped Starknet development unit. Each division will operate with dedicated engineering, product, and go-to-market functions. COO Oren Katz has requested to leave and will remain through the end of April.
Ben-Sasson framed the downsizing as a return to startup discipline. The company will concentrate on products that can only be built on its proprietary stack — which includes the Cairo programming language, Sierra, and quantum-resistant STARK cryptography — reducing reliance on external Layer 1 partnerships and third-party application teams.
Affected employees will receive severance that Ben-Sasson said would exceed legal and contractual requirements in many jurisdictions. Further strategic details are expected to be shared next week.