Status’ Co-founder Jarrad Hope announced via an internal memo that the company will lay off 25 percent of its staff and consider salary cut for others
The statement read:
“Currently 25% of our roles are non-essential to those goals and our long-term growth projects, and regretfully we’re forced to ask the contributors occupying them to leave today. For those staying with us, to squeeze every penny and get a runway as long as we can, I will be asking you to take a temporary pay cut during this time, which will alleviate as the market picks up.”
Hope explained that the measures come as a result of the current downtrend in ETH price noting that it was not planned for. “This happened because we budgeted based on an assumption of a higher floor in the event of a market crash, and did not prepare for scenarios where the value dropped beyond 80% since August,” said noting that “this was the first major crash the organization has witnessed. “We’re forced to adapt. So, as of today, Status is now in battle mode” he declared.
June last year, Status raised a total of 182,000 ETH during its ICO which was worth $64 million at the time and about $250 million at ETH’s all-time high. Unfortunately, that sum would be worth only $15.5 million at today’s prices.
Status, however, is yet to deliver the product promised in its whitepaper. Hope noted that the development team has made “great strides” but have been pegged back by technical issues this year. He also blamed the lack of “solid banking partners”–until the second quarter of this year—for the firm’s ailing condition.
What Next For Status?
Hope suggested that the company had enough funds (in fiat) to see it through the next six months without disrupting its development activities. If the crypto market does not recover after this period, he explained that they will have to re-evaluate.
“The reality is that we will have to make another assessment end of Q2 which if the market hasn’t picked up we will be forced to make the organization even leaner, and the remaining fiat and our large ETH holdings will be used to create a runway measured in years.”
He reiterated their main priorities; to deliver on the whitepaper promise and to improve the usability of its mobile App.
ConsenSys which is the biggest ethereum-focused development firm announced the layoff of 13 percent of its staff due to the harsh crypto market. ConsenSys’ Founder Joseph Lubin confirmed that the firm will also drop several underperforming projects amongst other restructurings to make it more financially stable.