In a significant downsizing move, dYdX Trading, the decentralized crypto exchange operator, has laid off 35% of its workforce. This decision follows CEO Antonio Juliano's recent return to the company on October 10 after a five-month absence. Juliano explained that the layoffs were necessary for dYdX to realign with a new strategic direction.

Juliano acknowledged the difficulty of the decision, stating, "Today, I made the incredibly difficult decision to lay off 35% of the dYdX core team." He emphasized that dYdX must adapt to survive and thrive in the fast-evolving crypto market, promising that the company would "move forward with clarity and renewed passion."

The layoff announcement coincides with similar cuts by ConsenSys, the company behind MetaMask, which reduced its staff by 20% in an effort to become a leaner organization, as confirmed by CEO Joe Lubin.

Since his return, Juliano has pledged to take a hands-on approach to lead dYdX in a challenging market, citing increased competition and regulatory pressure. Earlier this year, dYdX faced a DNS attack that compromised its exchange’s domain, which led to security concerns as the attacker solicited transfers of Ether and ERC-20 tokens.

Despite these challenges, dYdX remains a leading player in the perpetual futures market, with its dYdX v4 platform ranking sixth in daily trading volume among decentralized exchanges. The company’s recent restructuring aims to strengthen its position amid a volatile crypto landscape, with Bitcoin recently nearing its all-time high of $73,857.

This pivot marks dYdX’s attempt to stay competitive as it navigates the turbulent waters of the decentralized finance (DeFi) sector.