Starknet Layoffs Amid Revenue Collapse and Restructuring
StarkWare, the company behind the Ethereum Layer-2 network Starknet, announced layoffs and a split into two business units on April 13, 2026, following a revenue drop from nearly $6 million per month in late 2023 to about $48,000 in April 2026.[1][2][3] CEO Eli Ben-Sasson cited the need to become leaner and focus on revenue-generating products after the company grew too large for its current economics.[5][6] This move comes as Starknet’s total value locked (TVL) holds at around $242 million despite the fee compression.[2][6]
Overview
- Starknet monthly revenue fell >99%, from ~$6M in late 2023 to ~$48k in April 2026, driven by lower fees post-Ethereum’s EIP-4844 upgrade in March 2024.[1][2][3]
- StarkWare is splitting into two units: one for Applications (commercial products like StarkEx) and one for Starknet (open network and ecosystem).[3][5]
- Layoffs announced April 13, 2026, by CEO Eli Ben-Sasson to return to a “startup model” with dedicated teams led by Avihu Levy and Tom Brand.[5][6]
- Starknet TVL at $242M as of mid-April 2026, down from $330M peak in January 2026, indicating sustained activity but reduced income generation.[2][6]
- EIP-4844 reduced L2 transaction costs industry-wide, compressing fees for Starknet and competitors without eliminating usage.[2][3]
- No specific layoff numbers disclosed; company plans support beyond legal obligations for affected staff.[5]
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Starknet Revenue Collapse Details
Starknet’s network fees provide the core revenue for StarkWare. Data from DefiLlama shows the plunge: late 2023 monthly highs near $6 million, collapsing to $48,000 through mid-April 2026.[1][2][3] This >99% drop aligns with broader L2 trends after Ethereum’s Dencun upgrade (EIP-4844), which slashed blob fees and transaction costs.[2]
Lower volumes played a role too. Peak activity in late 2023 supported high fees; recent months show reduced throughput despite TVL stability.[3] CEO Ben-Sasson highlighted this in his April 13 all-hands address, noting the pivot away from pure scaling.[6]
StarkWare Restructuring Breakdown
The reorganization divides StarkWare into distinct units. The Applications unit targets commercial deployments, likely leveraging StarkEx tech used by dYdX and Immutable X since 2020.[5] Starknet unit handles the open ZK-rollup network, launched in 2021, with STRK token for fees, staking, and governance.[5]
Each unit gets its own engineering, product, business development, and go-to-market teams. Leaders include Chief of Product Avihu Levy and Head of Product Tom Brand.[5] Ben-Sasson, CEO since February 2024, drives the revenue focus, stating the company was “too big and too inefficient.”[5][6]
Layoffs accompany this. Ben-Sasson called it a “tough but responsible decision” to move faster, without specifying scale or timeline.[1][5] Affected employees get individual meetings and enhanced support.[5]
No Evidence of Scroll Cost Cuts
Searches yield no primary or credible reports on Scroll cost cuts tying to Starknet layoffs or any revenue-focused pivot.[1-7] Scroll, another Ethereum ZK L2, operates separately with its own token SCROLL and no announced staff reductions or restructuring in April 2026 sources. StarkWare’s moves stand alone; any linkage to Scroll remains unconfirmed and unsupported.
On-Chain Metrics for Starknet
Starknet’s STRK token traded at $0.03294 on April 13, 2026, down 1% in 24 hours.[5] TVL metrics from DefiLlama confirm $242 million current, versus $330 million January peak.[6] No direct Glassnode, Arkham, Nansen, or Santiment data in sources for holder behavior or flows, limiting deeper on-chain views.
| Metric | Late 2023 Peak | April 2026 | Change |
|---|---|---|---|
| Monthly Revenue | ~$6M [1][2] | ~$48k [1][2] | -99% |
| TVL | N/A | $242M [2] | Down from $330M Jan 2026 [6] |
| STRK Price | N/A | $0.03294 [5] | -1% (24h) |
This table pulls verified figures only. Revenue ties directly to fees; TVL shows locked value persists.[2]
Industry Context and Competitor Comparison
Starknet’s revenue slide mirrors L2 peers post-Dencun. EIP-4844 boosted efficiency but hit fees across the board.[2][3] Competitors like Optimism and Arbitrum faced similar compressions, per DefiLlama trends cited in reports.[1]
Recent crypto layoffs add pressure. March 2026 saw Crypto.com and Algorand cuts; year-to-date includes Messari, OP Labs, Polygon, Mantra.[6] StarkWare, once valued at $8 billion, joins this wave.[3]
| L2 Network | Recent TVL | Revenue Trend Post-Dencun | Notes |
|---|---|---|---|
| Starknet | $242M [2] | -99% [1] | Layoffs announced [5] |
| Arbitrum | N/A | Fee compression [2] | No recent cuts reported |
| Optimism | N/A | Similar decline [3] | Industry-wide [6] |
| Scroll | N/A | No data | No cuts confirmed |
Table uses Starknet data; competitor trends from source context only.[2][3][6] No specific TVL or revenue for others in results.
Long-Term Perspective (12-36 Months)
Over 12-36 months, StarkWare’s pivot could stabilize via Applications unit revenue, like StarkEx enterprise deals.[3][5] Starknet network relies on ecosystem growth for fees and STRK utility in staking/governance.[5] TVL at $242 million suggests base activity; if volumes rebound with Ethereum scaling demand, revenue may recover baseline levels.[2][6]
Upside ties to ZK tech adoption; baseline assumes continued fee pressure without volume surge. No projections beyond source-stated shifts.[1][4] STRK’s role in consensus could support holder retention if network usage grows.[5]
On-chain limits apply-no exchange flows or supply-in-profit data available. Wallet clustering or LTH accumulation absent from sources.
Risks and Uncertainties
Downside scenario: Prolonged low volumes keep revenue below $50k monthly, pressuring further cuts or unit viability.[1][2] Uncertainty around layoff scale-undisclosed numbers hinder impact assessment.[5][6]
Sources agree on revenue drop and restructuring but vary slightly on April figures (~$48 vs. $48k precisely).[1][2] No Scroll data creates gap; TVL trackers like DefiLlama may lag real-time.[2][6] Projections distinguish baseline (sustained low fees) from upside (volume recovery), with no guarantees.[3]
Starknet TVL stability at $242 million underscores usage amid Starknet layoffs, pointing to potential for revenue refocus if ecosystem expands over 12-36 months.[2][6]
- https://whale-alert.io/stories/98a501f30e5b01/StarkWare-reorganizes-cuts-jobs-after-Starknet-revenue-collapses-99-from-6Mmo-to-48k
- https://news.bitcoin.com/starkware-cuts-jobs-as-starknet-revenue-collapses/
- https://www.mexc.com/news/1024368
- https://www.coca.xyz/post/starknet-founder-announces-layoffs-in-shift-to-revenue-driven-strategy
- https://www.thestreet.com/crypto/markets/8-year-old-tech-firm-announces-surprising-layoffs
- https://forklog.com/en/starkware-to-downsize-and-restructure-into-two-divisions/
- https://www.coindesk.com/markets/2026/04/13/starkware-cuts-jobs-in-reorganization-as-starknet-revenue-plunges-99-from-peak
