by John Smith Dash is going to lay off 8% of its employees!
Times are tough for crypto startups with a crypto bear market that is not over yet.
The challenge is to survive this bear market before the return of the bulls.
Despite positive news for Dash like Dash Text and cryptocurrency payment in restaurants in Venezuela like buying a burger, Dash is forced to lay off staff to deal with a tough crypto market where cryptocurrencies are not yet used by the general public.
This is not the first crypto company to dismiss staff of course (Steem, etc…) nor the last, not to mention some startups who simply had to shut down without saying anything.
The important thing is to reduce operating costs to keep up for a few months, staff costs are very expensive for a company, so that’s where the cost cutting goes first.
On March 7, 2019, Dash Core Group will proceed with a staff reduction resulting in the lay off of 8% of its employees.
The decision will have a direct impact on human resources, strategy and business development.
The measure aims to reduce costs and adapt to the available budget.
The measure was announced in a statement released on February 23, 2019 by Ryan Taylor, a member of the Dash Core team.
Taylor unveiled the details of the next stqff layoff and argued that it was a new adaptation to the consequences of this crypto winter.
The cryptocurrency market has been in a downward trend, DASH reached $60 in December 2018 when we know that Dash had reached 1500 Dollars in the past!
In addition, he ensured that the reduction in the price of Dash was consolidated through compensation funds, voluntary salary cuts and the elimination of social benefits, among others.
However, as these measures were not sufficient, it was decided to put in force the lay off of staff…
Downsizing implies the elimination of the human resources department, whose tasks will be absorbed by other employees.
On the other hand, partial layoffs in the areas of strategy and business development will result in reallocation of activities between team members, corresponding to each department.
Ryan Taylor stated this:
“This was not a decision we took lightly and we’ve been actively finding ways to reduce the budget over the past several months.
A large number of contributors have already stepped forward to voluntarily reduce or eliminate their compensation, which has helped us a great deal coping with the reduced budget size.
A hiring freeze has been in place for over 6 months, which has also allowed for some natural turnover to have an effect on our expenses as well.
Unfortunately, at the current price, we reached the limits that these measures could address.
We want to stress that no layoffs were related to performance, but based on what we felt was the best decision for both DCG financial health and the network in light of the current available budget.”
Let’s hope that Dash does not have to lay off more people, the times are hard for cryptos projects but also for the public who bought cryptocurrency at a high price and waiting for the market to back up.
Bitcoin may have or probably reached the bottom in December 2018 in terms of price, the future will tell. We talk about it in an article, click here.
The crypto market will eventually rise again, the good cryptos projects will survive, others will disappear, this is how the economy and markets work.
