Bitcoin Mining Company Slashes 27% of Workforce in Strategic Shift Amid DCG Restructuring: Report

Distinguished Bitcoin mining pool Foundry Digital reportedly slashed 27% of its workforce this week. The layoffs, which affected 74 staff, replicate a strategic shift to prioritize core operations, together with its Bitcoin mining pool and website operations. This determination follows an inside restructuring throughout the Digital Forex Group (DCG), Foundry’s father or mother firm.

CEO Mike Coyler said that the agency is specializing in its core enterprise traces to strengthen its market place. As a part of this shift, the platform has deprioritized its customized {hardware} initiatives whereas sustaining its ASIC restore providers.

Foundry Cuts Jobs

In response to the newest report by Blockspace, the layoffs have been accompanied by the switch of 20 Foundry staff to Yuma, a decentralized AI startup spun out of Foundry’s inside Bittensor undertaking. Yuma now operates as an unbiased DCG entity underneath CEO Barry Silbert. Foundry’s administration described the adjustments as a part of a technique to streamline operations and refocus on its core companies, together with its flagship Bitcoin mining pool and website operations.

Foundry at the moment accounts for 30% of the Bitcoin community’s whole hash fee. Its self-mining enterprise alone is on observe to generate $80 million in income for 2024, as per DCG’s Q3 2024 shareholder letter. In the meantime, different enterprise traces, comparable to ASIC repairs and decentralized AI infrastructure, stay operational.

In an announcement, the corporate claimed,

“We just lately made the strategic determination to focus Foundry on our core enterprise whereas supporting the event of DCG’s latest subsidiaries. As a part of this realignment, we made the tough determination to scale back Foundry’s workforce, leading to layoffs throughout a number of groups.”.

Navigating Troubled Waters

The layoffs come amid broader challenges for DCG, which has labored to stabilize its operations following the chapter of its lending subsidiary Genesis after being caught up within the FTX fallout.

Amidst monetary challenges, Foundry moved from a free mannequin to a paid service, marking a big change in its enterprise technique in April final yr.