Nem Foundation is allegedly on the brink of bankruptcy and may soon lay off its entire 150-person workforce in the wake of severe budget cuts for an upcoming restructuring.

Alex Tinsman, the newly elected chairman of the foundation, reveals that the organization will purportedly submit a funding request to its community fund for $7.5 million worth in NEM tokens to help salvage the situation.

Tinsman, who took over the non-profit in January, said that the change was happening due to the previous management’s actions. 

“Basically we realized we had a month to operate, due to the mismanagement of the previous governance council.” said Tinsman.

Major Shift in Management Philosophy

According to its official announcement, the organization is making a transition from a promotional-focused organization to a product-focused one. Evidently, it is already making an effort to reduce its marketing activities.

“We’ve reduced marketing activities because it doesn’t make sense to market a product [Catapult] that isn’t out yet,” Tinsman said.

It has been reported that roughly 80 million XEM had been spent on marketing between December 2017 and January 2019.

The foundation is set to embark on a much more disciplined roadmap for 2019 to reduce its reliance on community grants, with plans to monetize the foundation’s activities, including enterprise training and affiliate marketing. 

Tinsman also noted that the teams will be given specific budgets and they perform more open-source documentation of their progress making tools for the NEM ecosystem.

The funding request will be voted by the current members in February and the number of job cuts will be determined by how much finding the community approves.