Foundry, a leading mining pool owned by Digital Currency Group (DCG), has laid off 16% of its U.S.-based employees. This move is part of the company’s broader strategy to streamline operations and focus on its core business — managing the world’s largest Bitcoin mining pool.
Adjusting Strategy for Long-Term Growth
The layoffs come after Foundry decided to concentrate its efforts on Bitcoin mining pool operations and expand its site operations business. According to a company spokesperson, the restructuring is aimed at refining the business strategy to ensure long-term success. While the focus will remain on the Bitcoin mining pool, Foundry is also supporting the growth of new DCG subsidiaries, such as Yuma, an AI-focused company, and other business ventures.
Foundry’s CEO, Mike Coyler, confirmed that the layoffs were part of a broader realignment and workforce reduction. The company, which previously employed 274 people, has now reduced its workforce by 27%, bringing the total headcount down to 200.
The Impact of the Bitcoin Halving on Mining Profitability
The decision to cut staff follows broader trends in the crypto mining industry, where many miners are looking to reduce costs. The Bitcoin halving event in April significantly lowered mining rewards, making the process less profitable for miners. As a result, companies like Foundry are being forced to adjust their operations to remain competitive and viable in a challenging market.
Foundry’s Role in the Bitcoin Mining Ecosystem
Despite the layoffs, Foundry remains a dominant force in the Bitcoin mining space. The company’s mining pool contributes nearly 32% of the total Bitcoin hash rate, making it the largest mining pool globally. In addition to mining operations, Foundry also engages in hardware production, mining site operations, technical education, and ASIC repairs.
To support its broader strategy, around 20 employees from Foundry were reassigned to Yuma, DCG’s AI-focused subsidiary. This highlights Foundry’s effort to optimize its resources and align its workforce with its evolving business priorities.
Industry-Wide Cost-Cutting Measures
The move by Foundry reflects a wider trend in the mining sector, where companies are feeling the financial strain of reduced profitability following the halving. Bitcoin’s hashprice index, which measures earnings from mining, has significantly decreased over the past year, impacting miners’ bottom lines. However, there has been a slight recovery in recent months, offering some hope to mining firms under pressure to stay afloat.
As Foundry pivots its focus and navigates these challenges, it will likely continue to play a key role in the global Bitcoin mining industry.
