NEM Foundation cedes to bear market, seeks to cut workforce
NEM Foundation, the nonprofit organization behind NEM blockchain, has ceded to bear market pressures. The company is planning to cut its workforce following a harsh budget cut. The layoffs will affect the whole workforce which has about 150 employees, according to a report.
“The NEM Foundation has restructured to eliminate regional teams and replace them with newly created product-focused teams. All Foundation employees and contractors will now report to one of the seven product teams,” said the company in a blog.
The Foundation has decided to submit a funding request to the NEM community to raise funds to help save the foundation from going under. Alex Tinsman, the head of the Singapore based foundation said that layoffs will depend on the funding that they receive. The funding request will be for 160 million XEM tokens approximately worth around $7.52 million.
“Basically we realized we had a month to operate, due to the mismanagement of the previous governance council,” said Tinsman, according to the report.
The Foundation’s members will be asked to vote on the funding request. “The community will also be voting on these [funding requests] and which ones we should be moving forward with,” she said.
Tinsman said that the Foundation spend approximately 80 million XEM between 2017 and 2018 for marketing their new product called Catapult. Catapult is a blockchain engine that can support both private and public networks. Catapult is destined to become the core NEM engine. The product is set to launch in June 2019.
“We’ve reduced marketing activities because it doesn’t make sense to market a product [Catapult] that isn’t out yet,” Tinsman said.
Tinsman seeks to stick to a refined roadmap for 2019. She said that teams will now work under a specific budget. She also intends to control spending on the company’s activities of 2019 like enterprise training and affiliate marketing.
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