Foundry, the world’s largest Bitcoin mining pool, has decided to lay off 27% of its staff for strategic move.
According to a source familiar with the matter, the workforce reduction includes both U.S.-based employees and a portion of the team in India. This move comes at a time when the company is focusing on realigning its core operations to ensure long-term growth and efficiency.
Bitcoin Mining Pool Foundry Lays Off 27% of Staff
CEO Mike Coyler confirmed the news in a statement to Blockspace, revealing that Foundry’s total headcount has dropped from 274 employees to 200.
The 27% reduction is significant, with 16% of the layoffs affecting the company’s U.S. staff.
Following individual notifications to staff, the layoffs were discussed in a team meeting on the afternoon of December 3.
Strategic Restructuring and Business Focus
The layoffs appear to be part of a broader business strategy aimed at shoring up Foundry’s main revenue streams. Sources suggest that the company is restructuring to focus on its core operations, which is to run the world’s largest Bitcoin mining pool and expand its site operations business.
In addition to the staff cuts, Foundry has moved about 20 employees to a new subsidiary under Digital Currency Group (DCG) called Yuma.
Yuma, a decentralized AI startup, spun out from Foundry’s internal AI arm, Bittensor, and is now pivoting its focus. Notably, DCG CEO Barry Silbert is serving as Yuma’s acting CEO.
This move to shift some of Foundry’s staff to Yuma, along with the ongoing separation of other aspects of the business, has affected approximately 40-60% of the company’s employees, according to anonymous sources.
Foundry has emphasized that these changes are part of a strategic decision to streamline operations and align the workforce with its long-term business goals.
Bitcoin Mining and Global Reach
Despite the layoffs, Foundry remains a dominant player in the cryptocurrency space. As of now, the firm controls approximately 30% of the global Bitcoin mining hash rate. With extensive operations as an institutional-grade mining partner in the United States and a significant international presence, Foundry continues to maintain a stronghold in the sector.
However, the company’s management believes that realigning its workforce is a necessary step to enhance its focus on the Bitcoin mining pool and site operations, the two key pillars of its business moving forward.
Wider Layoff Trends in the Crypto Industry
Foundry is not the only company in the cryptocurrency industry to announce layoffs. Several other firms in the sector have recently undergone significant workforce reductions as they adjust to market conditions and refocus their efforts. For instance, cryptocurrency exchange Kraken recently announced it would lay off 15% of its workforce, roughly 400 employees, as part of a restructuring initiative.
Similarly, Sky Mavis, the developer behind the blockchain game Axie Infinity, laid off around 21% of its staff as it works to realign its operations and focus on its core offerings.
These layoffs highlight the ongoing adjustments within the cryptocurrency industry as firms adapt to market challenges and seek greater operational efficiency.
For Foundry, the decision to reduce its workforce reflects the need to align resources with the evolving demands of the Bitcoin mining industry, while also supporting the growth of new ventures like Yuma.