Crypto Layoffs Continue with Dash Core Group Cutting Down on Staff
Dash Core Group will be losing its HR department as well as several members from other teams this month in a bid to reduce expenses and survive.
In another instance of crypto layoffs, the Dash Core Group, behind the DASH cryptocurrency, will be cutting down on staff to reduce expenses. The nearly 50-strong team will lose their Human Resources department and see a significant reduction in business development, effective this week.
Commenting on the staff reduction, CEO Ryan Taylor said:
“This was not a decision we took lightly and we’ve been actively finding ways to reduce the budget over the past several months.”
This development comes after months of a hiring freeze as well as voluntary cuts to salaries and employee benefits. Moving forward, the group’s CFO and CEO will be taking a more active role in human resources and business development activities respectively.
The crypto winter has affected several companies built around the market, particularly during the 2017 boom, and now, with Bitcoin and Ethereum having lost significant price value, businesses are struggling to stay alive.
In December last year, we saw big names like ConsenSys and Bitmain announce layoffs and more recently the smart contract auditing firm, Hosho had to let go 80% of its staff, despite being one of the industry leaders in security testing and auditing.
These layoffs can largely be attributed to budget constraints which have become unavoidable during the current bear market, which saw Bitcoin drop from nearly $20,000 to under $3,500.
As the value of cryptocurrencies dropped, existing ventures and crypto startups saw their budgets shrinking (since most of them held crypto raised during ICOs, particularly ETH) and new projects were either postponed or canceled given the discouraging market situation.
Moreover, given the mania during 2017, many believed the market was poised to continue growing and ‘go to the moon’, metaphorically speaking, which resulted in hiring sprees and unchecked growth, which consequently became unsustainable when the market crashed.
Now crypto ventures and companies are taking a more measured approach towards expansion and growth, and it remains to be seen which way the market turns this year.