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Foundry cuts 27% of workforce to refocus on Bitcoin mining

Foundry cuts 27% of workforce to refocus on Bitcoin mining

GrafaGrafa2024/12/05 13:10
By:Isaac Francis

Foundry, a bitcoin (CRYPTO:BTC) mining company, announced it has laid off 27% of its workforce as part of a strategic restructuring effort.

More than half of the affected employees were based in the U.S., and the company now operates with a leaner workforce of 200 employees.

The layoffs are tied to Foundry’s decision to spin off its artificial intelligence (AI) arm, Bittensor, into a new subsidiary called Yuma.

This move allows Foundry to concentrate on its core business of bitcoin mining and site operations.

Foundry CEO Mike Coyler explained that the restructuring aims to align the company’s resources more effectively.

“As part of this realignment, we made the difficult decision to reduce Foundry’s workforce... We’re grateful for the contributions of all our employees, including those impacted by these changes,” the company stated.

Rumors initially circulated that Foundry had laid off up to 60% of its workforce, but the company disputed this figure, stressing the official 27% reduction.

Foundry also clarified that it is not shutting down its hardware and ASIC repair business lines but is deprioritizing them in favor of other operations.

The layoffs come at a time of growth for the crypto mining sector, with companies like Marathon Digital Holdings, Hut 8 Mining, and Riot Platforms experiencing rising stock prices and revenues.

This growth continues despite the recent Bitcoin halving, which reduced block rewards to 3.125 BTC, creating additional challenges for miners.

Foundry’s parent company, Digital Currency Group (DCG), is also undergoing a significant restructuring process following the bankruptcy of its subsidiary Genesis.

DCG has invested heavily to repay Genesis creditors, including a $482.5 million settlement in cash and cryptocurrency to resolve a $1.7 billion loan dispute.

Foundry’s decision to streamline operations and focus on bitcoin mining reflects broader trends in the industry, where efficiency and adaptability are increasingly critical.

Despite the layoffs, Foundry remains a key player in the crypto mining sector, navigating market challenges while realigning its priorities to maintain growth.

At the time of reporting, Bitcoin price was $103,192.

 

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