As an analyst with over two decades of experience in the tech and finance industry, I find it intriguing to observe the ebb and flow of the crypto market, especially during times of significant change. The recent layoffs at Bitcoin mining firm Foundry, impacting as many as 60% of its workforce, seem to be a trend that’s becoming all too familiar in the crypto space.
Approximately 60% of the workforce at Bitcoin mining company Foundry has been let go, according to an anonymous source report from Blockspace. This reduction in staff affected both U.S. and international offices, leaving around 80-90 employees out of an original team of 250.
Foundry and its Strategic Business Focus
According to the report, Foundry’s leadership initially communicated the layoffs individually and later addressed the topic during a team meeting. Despite not experiencing losses, the company anticipates earning $80 million from its self-mining operations this year. Additionally, they suggested that their mining pool holds the largest global share in the industry.
Currently, the company’s hashrate makes up approximately 30% of the worldwide mining industry’s total. Although it boasts extensive operations within the US as a top-tier mining partner, it also maintains connections overseas. Despite this expansion, the firm explained that the move to reduce its workforce is a strategic one, aimed at aligning with its ongoing business restructuring efforts.
The Digital Currency Group’s affiliate, known as Foundry, recently announced layoffs. According to Blockspace, this move was intended to streamline efforts towards the parent company’s upcoming projects. It’s worth mentioning that DCG unveiled Yuma last month, a new subsidiary dedicated to enhancing the Bittensor (TAO) ecosystem, as previously reported by Coingape.
The report indicated that Foundry is transferring some of its employees to Yuma. The collapse of FTX Derivatives Exchange affected DCG and its affiliates, leading to financial difficulties. As they navigate through bankruptcy and legal issues, the layoffs are seen as a necessary step in DCG’s overall restructuring plan.
Layoffs Is the Getaway or Crypto Firms
In addition to Foundry and Digital Currency Group, several other crypto companies have recently carried out reductions in their workforce.
As a researcher, I’ve observed that Kraken Exchange, where I’ve been closely following developments, has undertaken not one but two significant staff reduction exercises this year. According to an earlier report by Coingape, these restructuring measures reached a new intensity as Kraken closed its NFT marketplace.
Over the last twelve months, significant companies within the sector, such as Bybit, have made redundancies to facilitate expansion. Remarkably, even with these widespread layoffs, entities like Tether Holdings Inc are planning to expand their staffing numbers by twice as much over the next year.
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2024-12-03 23:49