Foundry, a major Bitcoin mining firm, has laid off about 60% of its employees, reducing its workforce from 250 to around 80-90. This decision, affecting staff in the U.S. and internationally, is part of a strategic realignment despite the company expecting to generate $80 million from its self-mining operations this year. Foundry, which is a subsidiary of Digital Currency Group (DCG) and operates the world’s largest mining pool, aims to focus on new initiatives following restructurings within DCG triggered by challenges faced in the crypto Market, including the fallout from FTX’s collapse. Similar layoffs have been seen across the industry, including Kraken, as companies adjust to Market conditions.
Bitcoin mining company Foundry has recently announced significant layoffs, affecting around 60% of its workforce. A report from Blockspace reveals that this downsizing impacted employees both in the United States and internationally. With a staff originally numbering around 250, the company now retains only about 80 to 90 employees.
The company’s management communicated these layoffs directly to employees and discussed the decision during a staff meeting. Notably, Foundry is not in financial trouble, with its self-mining operations projected to generate around $80 million this year. Additionally, it holds a prominent position in the industry as it manages the largest mining pool globally.
At present, Foundry accounts for roughly 30% of the total global hashrate and continues to expand its institutional-grade mining partnerships in the U.S. and beyond. The layoffs are characterized as strategic, aimed at aligning the company with its future business realignment goals.
Foundry operates under the umbrella of the Digital Currency Group (DCG), and reports indicate that the layoffs are part of a broader restructuring initiative following challenges faced by DCG, including repercussions from the FTX Derivatives Exchange fallout. Some Foundry team members will be transitioning to a newly established subsidiary called Yuma, focused on enhancing the Bittensor ecosystem.
The trend of layoffs is not limited to Foundry. Other crypto firms, like Kraken, have also recently let go of staff, with Kraken announcing significant reductions this year. The dynamic landscape of the cryptocurrency Market has led many companies to reevaluate their operations, signaling a shift in focus amid changing industry conditions.
In the wake of these events, the crypto space continues to evolve, with some firms planning to expand their workforce even as others cut back.
What happened at Foundry?
Foundry, a Bitcoin mining company backed by DCG, has cut 60% of its workforce due to financial challenges.
Why did they lay off so many employees?
The company faced tough Market conditions and needed to reduce costs to stay afloat.
How will this affect Bitcoin mining?
The layoffs could impact Foundry’s mining operations and its ability to compete, but the overall Bitcoin network may remain stable.
Is Foundry still operational after these cuts?
Yes, Foundry continues to operate, but with a smaller team focused on essential tasks.
What does this mean for the future of Bitcoin mining?
It shows the challenges in the industry, but it may push companies to become more efficient in the long run.
