The current bear of cryptocurrency market is pushing many companies to either shut down fully or some part of their operation. The Bitcoin(BTC) mining giant, Bitmain joins the listing as reportedly, the firm is axing almost half of its staffers by the end of this week.
A source from the Chinese media “https://t.co/R7QA1GiJr0″ target=”_blank” rel=”nofollow noopener”>reports that the company has laid off the team that was working on the development of Bitcoin Cash client. The Blockstream Chief Strategy Officer, and former BTCC Chief Operational Officer, Samson Mow, tweeted about the event,
Bitmain has quietly laid off their entire Copernicus team (#Bcash GO client). Only 1 week notice. Some had just joined the company. Layoffs just in time for Christmas. #BitmainIPO @HKEXGroup @SCMPNews pic.twitter.com/Kt2Ce90sBW
— Samson Mow (@Excellion) December 23, 2018
The news was further confirmed when ex-employees of Bitmain, started sharing their exit stories on LinkedIn. The managing director at Danhua Capital, Dovey Wan, shared a series of tweets highlighting the matter.
there’s post on Chinese Linkedin (usually very high accuracy, posted by employees themselves) saying Bitmain will start a layoff the coming week … ???
A separate rumor said the plan is for more than 50% of its headcount ???! pic.twitter.com/b0ZSBuPX4d
— Dovey Wan ? ? (@DoveyWan) December 23, 2018
“The crypto market has undergone a shakeup in the past few months, which has forced Bitmain to examine its various activities around the globe and refocus its business by the current situation.”
The Bitcoin Cash hash war in November robbed the cryptocurrency market cap of around $70 billion worth of investments. Bitmain was on Roger Ver’s team and supported Bitcoin ABC protocol. Reportedly, in order to attain lead over the other update, Bitmain suffered millions of dollars worth of losses while diverting Bitcoin’s surplus hash power to its ally.
In addition, the drop in mining equipment sales and the depreciation observed throughout this year have pushed the company on a firing spree. Although it is currently not known whether or not it is a global layoff, Beijing layoffs are already active, reported 36kr. Another report suggests that the 2,000 employee count would probably drop to mere 300 by the end of the whole spree.