On Monday, Sirin Labs announced that they had laid off 25% of their workforce. This reduced their employee group from 60 down to 45.
Sirin appeared to be on the cusp of some of the latest and greatest technology. They are the developers of the Finney blockchain phone and were only one of a few companies that were actually creating such devices using the technology. Even Samsung has found themselves trailing in this market before recently attempting to play catch up.
On March 21, Sirin had announced a deal with MyEtherWallet that the digital wallet would be included in all of the Finney devices. This would enable users to be able to make purchases using their smartphone by using their digital wallet, knowing that the transactions would be protected through the blockchain technology.
With the added features, it was expected that Finney sales would go through the roof, but things did not work out that way. The sales were “below what we expected” according to the report.
Why the sales did not reach its potential has been an interesting debate. The first concern has been that cryptocurrency values have been on the decline. Sirin reports that this has had a dramatic effect on sales because it has decreased the amount of currency people have available to make purchases. Plus, it diminishes the need that consumers would have for a wallet as part of the smartphone because decreased assets would be available to them.
Even with this is a concern, sales simply did not match projections. The addition of the digital wallet, as well as the use of blockchain technology, simply did not entice consumers to want to purchase the devices,