Foundry Lays Off 60% of Workforce to Streamline Operations
Foundry, the largest Bitcoin mining pool and a subsidiary of Digital Currency Group (DCG), has reduced its workforce by 60%, primarily affecting non-core teams like hardware and ASIC repair. This move is part of DCG’s strategy to streamline Foundry's operations and allocate resources toward new initiatives, including Yuma, an AI ecosystem accelerator launched by DCG founder Barry Silbert.
The layoffs impacted a large portion of Foundry's 250 employees, with 20 reassigned to Yuma and most others dismissed. The hardware team was completely eliminated, and Foundry is reportedly considering selling its mining site operations team. Despite these changes, Foundry's core mining pool operations remain intact.
Bitcoin mining faces increasing challenges due to higher mining difficulty and reduced profitability, particularly after the recent halving event. These issues have led many mining companies, including Foundry, to reassess their operational efficiency. Foundry continues to rank among the largest Bitcoin mining pools globally, sharing a significant portion of the hash rate with AntPool, but financial pressures are evident in the industry.
DCG's recent history includes financial difficulties, such as lawsuits from its subsidiary Genesis over unpaid loans and the sale of CoinDesk. However, the launch of Yuma indicates a shift towards AI and new technologies to diversify business interests within DCG.
Foundry's financial health remains uncertain. DCG’s Q3 2024 shareholder letter projected $80 million in revenue for Foundry, yet the layoffs indicate potential underlying challenges. These cuts may reflect shifts in Foundry's focus and operations, leaving its future uncertain amid a volatile mining market.