Bitmain Plans to Layoff Over Half its Workforce

Karan Balwani

December 27, 2018 12:26 pm

Cryptocurrency News

Bitmain Plans to Layoff Over Half its Workforce
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Bitmain, the world’s largest manufacturer of cryptocurrency mining hardware is facing a difficult time. Ever since the price drop of Bitcoin and other cryptocurrencies, mining has stopped being profitable for the majority of companies and users.

It is speculated that the mining giant may start laying off employees this week and this can lead to a loss of more than half of its employees. This report was first published by CoinDesk this past Tuesday.

It is speculated that the layoffs will take place across the board, including crypto mining, the company’s core business division. If CoinDesk’s report is to be believed, the employees who are working on artificial intelligence and blockchain technologies will be the worst victims of this downsizing.

The rumors of this downsizing first surfaced on Maimai, China’s version of LinkedIn this past week. A verified Bitmain employee posted,

“It’s affirmative. The layoff will start next week and involves more than 50 percent of the entire Bitmain’s headcount.”

A Bitmain spokesperson did not confirm the 50 percent portion of the rumor, though he said

“There has been some adjustment to our staff this year as we continue to build a long-term, sustainable and scalable business. A part of that is having to really focus on things that are core to that mission and not things that are auxiliary.”

According to an anonymous source, Bitmain had increased its employees from 1,000 to 3,100 in this year alone. A major part of this growth is credited to the company’s interest in investing in blockchain technologies and artificial intelligence.

Bitmain shut down its Israel office earlier this month and laid off all its 23 employees, a move that was a result of the economic downturn in cryptocurrencies globally.

The company is currently valued at billions of dollars. Back in September, it confirmed the strategy to go public on the Hong Kong stock exchange. Since the downturn of the crypto markets, it seems that the plan might not go through.

A growing concern in the market is that if Bitmain topples, the cryptocurrency market will fall further into the abyss. This is because the mining giant holds a significant chunk of various cryptocurrencies which will drop in value in case Bitmain plans to go on a selling spree.

 

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