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Ethereum startup Status.IM lays off 25% of staff

source-logo  chepicap.com  + 3 more 15 December 2018 09:00, UTC

Another week in the bear market, another major lay-off of staff at a crypto startup. In an announcement on Monday, Status.IM said that it would be losing 25 of its staff.

Based in Switzerland, Status.IM is a startup that was launched after a successful ICO last year. It is developing a new open-source web browser, based on the Ethereum blockchain. Another Ethereum-related project, co-founder Joe Lubin's Consensys, was also recently forced to let over 10 percent of its staff go.

Read more: You're fired! ConsenSys now confirms it will cut 13% of its staff

This lay-off at Status amounts to around a quarter of the firm's staff being made redundant. It was announced via the company's internal discussion board. Co-founder Jarrad Hope said that Status was "operating an organisation that is much larger than we can sustain in this climate....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...This was compounded by not having solid banking partners".

Remaining staff at Status will be taking a temporary paycut, in a move similar to the 'voluntary' reduced compensation that developers at Dash Core Group are currently receiving, according to a recent announcement by the DCG CEO.

Read more: Dash CEO reassures community: "DCG is not at risk of shutting down"

Hope went on to say that "we will have to make another assessment end of Q2 which (could mean that) if the market hasn’t picked up we will be forced to make the organization even leaner".

chepicap.com

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