dYdX Cuts Workforce by 35% Amidst DeFi Struggles: CEO’s Vision for Revitalization

Decentralized exchange dYdX has undergone a major reorg this week, cutting 35% of the team. CEO Antonio Juliano, who just returned after a 6 month break, posted on X (formerly Twitter) with a reflective post titled “Letting Go”.

“We will be clear and passionate,” Juliano wrote in his post, “We will build cool stuff.”

Juliano, who started back on October 10, said “I’ve made the tough and sad decision to say goodbye to 35% of the dYdX team.”

Juliano’s return is a big moment for dYdX which has been through a lot in the DeFi space. Earlier this year they surpassed Uniswap in trading volume, they are a big player in the DeFi world.

But market challenges and internal restructuring needs forced Juliano to come back.

DeFi is getting rough with dYdX and ConsenSys layoffs

dYdX announced the layoffs just hours after ConsenSys, another big player in the space, cut 20% of their staff (160+ people). ConsenSys CEO Joseph Lubin said the reason was regulatory pressure, “SEC’s abuse of power is stifling innovation”.

This is the 2nd big layoff in the DeFi/blockchain space in a short period.

✦ dYdX $DYDX announces significant workforce reduction amid industry layoffs:

dYdX $DYDX Trading, the company operating the decentralized crypto exchange, has reduced its workforce by 35%, coinciding with Consensys's layoff of 162 employees, which represents a 20% cut. The…

— ZoneCrypto (@_ZoneCrypto_) October 30, 2024

Blockchain analyst @‌ceterispar1bus commented, “ConsenSys just laid off 20% of their staff and dYdX 35% while BTC is about to hit ATH”

For dYdX this is after a tough year of competition, market volatility and a complex regulatory environment. Juliano’s recent blog post “The Return” expressed his concerns about the direction of the company and the need for a fresh start.

“It’s become clear to me we need to reboot the company or we will fade” he wrote, meaning a more aggressive push to reposition dYdX in the DeFi space.

Internal Moves and Future at dYdX

The layoff announcement is part of an ongoing internal shift as dYdX tries to trim the fat and refocus on the core. Daniel Lian, dYdX’s head of finance, said goodbye to a lot of great people today. “Said goodbye to a lot of amazing people at dYdX. If you’re a company looking for some great talent, DM us.”

dmanlian (@dmanlian) X: “Said goodbye to a lot of amazing people today. If you’re a company looking for some great talent, DM us”

Juliano’s return as CEO comes after a tough period for dYdX. In July they were exploring to sell part of their derivatives trading software to Wintermute Trading and Selini Capital. And dYdX v3 website got hacked and the attackers embedded a token-draining program on their domain. This proved that strong leadership is needed.

“I now understand why the leadership needs to come from the founder” Juliano said earlier this month when he decided to step back as CEO. “As the founder, nobody will ever care or believe the way the founder does. It is theirs. That can’t be replicated.”

❗️ dYdX, the decentralized crypto exchange, lays off 35% of its staff just as new CEO Antonio Juliano returns, signaling a shift in company direction.

On the same day, Consensys, the company behind MetaMask, cut its workforce by 20% for greater agility, impacting 162 employees.

— Blockinsider (@BlockInsider_) October 30, 2024

Key Takeaways

• dYdX laid off 35% of their staff, after CEO Antonio Juliano came back as CEO.
• Layoffs coincided with ConsenSys cutting 20% of their staff, DeFi is having a tough time.
• Juliano is back to focus on strengthening dYdX’s position in the market.

DeFi is having a tough time with regulations and market volatility, dYdX is going lean and focus. Juliano is back to steer the company through the DeFi storm.