The firm behind the cryptocurrency project Dash is laying off some of its staff in a “crypto winter” cost-cutting effort.
Ryan Taylor, CEO of Dash Core Group (DCG), revealed February 23 that the company has chosen to let go four employees across several business areas—eight percent of its staff—to “reduce costs and align them with the available budget.”
As an effect, the human resources department will no longer function, the strategy section will be reduced by two people, and one person will be leaving the business development team. The layoffs will be effective March 7.
“This was not a decision we took lightly and we’ve been actively finding ways to reduce the budget over the past several months,” Taylor said.
According to its website’s information, DCG presently has a total of 49 employees.
Over the last year, DCG has witnessed some of its staff taking voluntary salary cuts and missing employee benefits to “maintain the company’s financial health” without increasing its total budget, according to Taylor. A hiring freeze has also been in place for more than six months now.
“Our monthly payments for January invoices yielded an average of ~$67 / Dash, which is the lowest price we’ve experienced since ‘crypto winter’ began,” Taylor stated. “We remain committed to keeping our proposal requests below 60 percent of the available budget.”
DCG further revealed some changes in operations, as well as business functions, following the staff changes. The human resources-related duties will be one of the responsibilities of the company’s chief financial officer, Glenn Austin. Strategy projects will switch to relevant functions and the CEO will be taking a principal role in business development.
In December 2018, Taylor claimed that DCG’s business is “sustainable,” saying that:
“DCG is not at risk of shutting down anytime soon, or of any significant cuts in staffing levels in the near term. We have a significant buffer in place to withstand the impact of the market bottom, whenever that comes.”
The company is the latest to reveal layoffs in the blockchain industry as drop in crypto prices greatly affect business models. Hosho, a smart contract auditing firm, made an 80 percent staff cut last month after a slow business in 2018. In January, blockchain project Nebulas laid off 60 percent of its team, while the NEM Foundation also revealed scheduled staff reduction.
Mining giant Bitmain and crypto startup ConsenSys also announced layoffs in December.