The flop of the Blockchain smartphone, dubbed Finney, which is supposed to be the world's first Blockchain phone, has finally resulted in big losses for SirinLabs. To cope with this failure, the startup was forced to lay off 25% of its workforce.
Economic situation degrades sales of SirinLabs
Although the launch of Finney , last November in Barcelona, has cost a fortune to SirinLabs, given that world famous personalities such as the footballer Lionel Messi and the famous boxer Triple G have been involved in the sales policy. , the results have remained silent to the chagrin of the company.
To explain the phenomenon, experts therefore announce a contrast between advertising and sales, driven by an endless downward trend.
Indeed, the market conditions did not allow such a huge project to attract investors, as no glimmer of hope was predictable for the rest of the year.
In the end, the company had to resort to massive dismissal to cope with the losses.
Also, 15 of the company's 60 employees (25% of the workforce) were fired. This being said, this figure seems slight compared to the forecasts of the observers.
A wave of dismissal for companies
Although the price of Bitcoin has increased lately, many Blockchain startups are still suffering the setbacks of the bear market of 2018.
Indeed, SirinLabs was not the first company linked to the blockchain to have been forced to reduce its workforce following the bear market.
ConsenSys , Spankchain, STEEM , Civil and ShapeShift have also decided to separate part of their workforce.
However, SirinLabs had denied rumors that she would have struggled to pay her employees.
The company reportedly even mentioned that its employees had been reimbursed for the month of March and received their salary for the month of April.
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