DeFi Exchange dYdX Follows Consensys in Layoff Spree, Cuts Workforce by 35%

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Sujha Sundararajan

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Sujha Sundararajan

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Last updated:

October 30, 2024 00:58 EDT

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Decentralized exchange platform dYdX CEO Antonio Juliano announced on Wednesday that the company has cut its core workforce by 35%.

Juliano, who returned as dYdX CEO on October 10 after a six-month hiatus, wrote on X that he made “the incredibly difficult and sad decision to move on from 35% of the dYdX team.”

In a blog post titled “Letting Go,” Juliano emphasized that the decision was a realisation that the company is different from the company dYdX must be.

“We will move forward with clarity and renewed passion,” he wrote. “We will create amazing things.”

“We now have the team we need going forward, but first, we say goodbye to those who have left.”

The announcement comes on the same day that Consensys reduced over 160 of its staff, representing 20% of the workforce. Consensys CEO Joseph Lubin blamed “SEC’s abuse of power” for hindering innovation and stifling growth.

Early this year, dYdX, best known for trading crypto derivatives, moved past Uniswap as the largest DEX by trading volumes.

Following Juliano’s post, Daniel Lian, head of finance at dYdX, posted on X that “a lot of great people” left dYdX. “If you’re a company looking for some amazing talent, drop us a DM,” he added.

The CEO hinted early this month that the company is forced to make challenging decisions. In a blog titled “The return,” Juliano wrote, “dYdX has had a challenging year. We’ve faced tough competition and a tough market.”

“It’s become obvious to me we need to revitalize the company or we will fade.”

dYdX had a tumultuous Time in the Absence of Juliano

In July, the DeFi exchange was in discussions over the sale of a portion of its derivatives trading software. The report noted that Wintermute Trading and Selini Capital were potential buyers. However, the firm did not disclose the sum.

During the same time, dYdX said that its v3 website had been compromised, cautioning users against clicking on any links. The exchange noted that an attacker installed a token-draining program on its official domain.

Additionally, CEO Juliano stepped away from leadership on May 13 for personal and professional reasons. However, his decision to return stems from the need for strong, founder-led leadership as dYdX confronts competitive pressures and a lack of clear direction.

“I realize now why the leadership that’s needed must come from the founder,” he said early this month. “As the founder, nobody will ever care or believe the way the founder does. It is theirs. That can’t be replicated.”