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Planned Reduction

Discussion in 'Official Announcements' started by Ryan Taylor, Feb 23, 2019.

  1. Ryan Taylor

    Ryan Taylor Well-known Member
    Dash Core Team Foundation Member

    Jul 3, 2014
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    As we shared on the last quarterly call, Dash Core Group was faced with some tough decisions to maintain financial stability in light of the current market. Although much of the impact from price reduction has already been absorbed by a combination of compensation fund buffers, voluntary pay cuts & eliminations, elimination of smaller stipends, and elimination of employment benefits, we have unfortunately reached the limits of what these options can accommodate. Earlier this month, we made the decision to lay off four of our DCG colleagues to reduce costs and align them with the available budget. Our monthly payments for January invoices yielded an average of ~$67 / Dash, which is the lowest price we’ve experienced since “crypto winter” began. As a result, these further steps were necessary to maintain the company’s financial health without increasing our share of the overall Dash budget; we remain committed to keeping our proposal requests below 60% of the available budget.

    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.

    Our primary focus remains on the development of the network, and more specifically, the roll out of Evolution. As a result, we decided to focus cost reductions on several business functions so that we can ensure that focus remains without disruption. The business functions impacted are:
    • Human Resources, which will be eliminated
    • Strategy, which will be reduced by 2 people
    • Business Development, which will be reduced by one person
    These changes take effect starting on March 7th, allowing some time for wrapping up projects or transitioning activity to other team members. In total, the planned reduction represents 8% of our staff.

    We are actively making changes within the organization to ensure business continuity despite the reduction in resources. More specifically, the operational changes we will be making include the following:

    Human Resources

    Many HR related duties will be shifted to individual managers, finance, operations, or myself. Glenn will be acting as a primary contact point for HR topics going forward.


    Strategy projects will transition to each of the functions with whom the strategy team had been supporting. Operations will assume maintenance responsibilities for the metrics and reporting tools that the strategy team recently created. Going forward, Liz will begin reporting to me directly and will continue to lead product management and related projects.

    Business Development

    I will be taking a larger role in business development going forward to assist with the smaller team size and capacity, and we will focus more attention and prioritize on the components of our growth strategy that are gaining traction most quickly.

    DCG is doing its best to minimize the impact to our people and operations, and though the options facing us were less than ideal, we will continue to balance the competing needs of financial stability, continuity for our operations and people, and needs of the network we serve. With these reductions, we are hopeful that Dash Core Group can weather the current environment. We wish nothing but success for those impacted and I want to thank them personally for the lasting contributions and commitment they demonstrated to both DCG and the network.
    • Informative Informative x 10
    • Like Like x 2
  2. camosoul

    camosoul Grizzled Member

    Sep 19, 2014
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    Trimming fat is good, but after having done it, the acknowledgement that you were gluttonous helps going forward.

    This has crossed the line from trimming the fat into skipping meals and pulling the belt tighter.

    Frankly, I'd like to see a larger take from the overall budget. Not that it would fully negate current ailments, but that every drop counts; it's time some other fat got trimmed, too...

    While DCG is, at this time necessarily, a software development firm; I'm concerned that it's going to stay that way.

    Having the coolest toys in the cul-de-sac doesn't do any good if nobody plays with them. Realize that other projects are swimming in conventional fundraising dough.

    The path for DASH is retail vendors. They need support in the way of services that actually work for their interests. 5 years on, this is still virtually non-existent. Cool software that nobody uses is different from cool software that can't be used. Where would Bill Gates be if computers had never been invented? DASH continues to risk that environment, and I'm waayyy past concerned about it...
  3. bhkien

    bhkien Active Member

    Mar 31, 2014
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    Bravely decision!

    Of course laying off isn’t fun, it’s hard, and feeling hurt. However it is necessary for the development of any organization.

    Because every organization if it growing too quickly, it’s very hard to select enough people who work effectively together in a short time.

    Reducing make the team more focus, more effective, and reduce unnecessary procedures.

    Maybe DCG could reduce the marketing function because it isn’t really effective.
    • Agree Agree x 1
  4. David

    David Well-known Member
    Dash Support Group

    Jun 21, 2014
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    Hopefully the Core Team can reevaluate their self-imposed (and seemingly-arbitrary) 60% budget limit. While I applaud the great work many community members are doing with their budget system funding, I think Dash Core development is paramount above all else. In such a challenging funding climate, why is Core restricting themselves to such an extent?
    • Useful Useful x 1
  5. qwizzie

    qwizzie Well-known Member

    Aug 6, 2014
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    #5 qwizzie, Mar 10, 2019
    Last edited: Mar 10, 2019