Bitmain Could Reduce Its Workforce by Another 50% Before Bitcoin Halving

News / 03.01.2020

Bitmain reduced its workforce by almost half in December 2018. At the time, the firm said that the action was towards the development of sustainable business and that it would keep doubling down on hiring the best talent from various backgrounds.

However, in recent times, reports have it that Bitmain is planning to lay off 50 percent of its workers. According to a report by the Chinese news media outlet Wushuo Blockchain on December 2, Bitmain introduced a “personnel optimization plan” to significantly reduce its workforce prior to the immediate Bitcoin halving, which has been scheduled for May.

Bitmain is expected to hold a yearly meeting on January 17, and the layoffs should have been completed prior to the meeting.

The individuals who are aware of the layoffs believe it is due to the imminent Bitcoin halving, which is to reduce the number of new coins given to miners by fifty percent. Shrewdly, Dovey Wan of Primitive Ventures tagged the layoffs as the “first halving of 2020.”

The legal challenges facing the firm continue. Dongguan Yongjiang Electronics filed an application against the firm, asking the court to seize 4,718,710.68 yuan ($676,000) from Shenzhen Century Cloud Core, which is fully owned by Bitmain and also a subsidiary of Bitmain.

It was due to an ongoing trade contract dispute, and in recent times, a court in China ordered the freezing of the said sum of money.

Besides, the firm’s co-founder Wu Jihan, in recent times resurfaced as the firm’s leader following the ousting of co-founder Micree Zhan three months ago. According to the claims by Zhan, his removal as a legal representative of Bitmain was without his consent. That is, Wu Jihan did not inform him before sending an email stating Zhan’s departure from the firm.

A year before the time he ousted Zhan, all of a sudden, he abandoned the firm’s CEO position and assumed a non-executive role on the firm’s board.

 

Picture taken June 4, 2016. REUTERS/Jemima Kelly/File Photo. Source: Cryptopress.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.