DCG-Backed Bitcoin Miner Foundry Cuts Workforce: Report

Bitcoin mining firm Foundry has implemented a job cut that impacted as much as 16% of its workforce. According to a Blockspace report citing anonymous sources, the firm’s layoff exercise spanned staff in the United States and international offices. With an initial staff strength of 250, the number of employees left is now just about 160.

Foundry and its Strategic Business Focus

Per the report, Foundry’s management first informed the employees individually and has discussed the layoff in a staff meeting. The company is not in losses as its self-mining business is expected to generate $80 million this year. The firm also hinted that it maintains the biggest mining pool in the world.

At the time of writing, the firm’s hashrate accounts for 30% of the global mining outfit. While it has extensive operations outside as institutional grade mining partner in the US, it also have reach abroad. Despite this growth, the firm said the decision to send some staffs away is strategic in order to align with its business realignment endeavors.

Foundry is a subsidiary of the Digital Currency Group (DCG). Blockspace also reported that the company said it implemented the layoffs to help focus on DCG’s next initiatives. As Coingape reported earlier, DCG introduced Yuma last month, a new subsidiary that will focus on developing the Bittensor (TAO) ecosystem.

The report noted that Foundry has shuffling part of its team to Yuma. DCG and its subsidiaries took a hit following the implosion of FTX Derivatives Exchange. Having dealt with bankruptcy and legal strains, the layoffs are considered a general part of DCG’s grand restructuring.

Layoffs Is the Getaway or Crypto Firms

Beyond Foundry and Digital Currency Group, other firms in the crypto industry have also initiated layoffs in recent times.

Notably, Kraken Exchange has also conducted two rounds of layoffs this year with over 1000 staffs impacted in the round. Per an earlier report by Coingape, Kraken took its restructuring to a new level by shutting down its NFT marketplace.

Over the past year, other major players in the industry including Bybit have also implemented layoffs to accomodate growth. Despite the grand job cuts, firms like Tether Holdings Inc have plans to double workforce in the coming year.