Bitmain May Lay Off Its 50% Workforce before Bitcoin Halving
In December of 2018, Bitmain reduced its workforce by almost 50%. The firm claimed it is because it focused on developing a sustainable business and that it would keep doubling down on hiring the best talent from different backgrounds.
Recently, there are claims that Bitmain is planning to lay off 50% of its current workforce. On the 2nd of December 2019, a Chinese news media outlet report said that the company introduced a personnel optimization plan to significantly reduce its workforce before the immediate Bitcoin halving scheduled for May 2020.
On the 17th of January, Bitmain will hold a yearly meeting, and the layoffs will allegedly be completed before the meeting. Some concerned individuals believe that the firing is due to the imminent Bitcoin halving, which reduces the number of new coins given to miners by 50%.
Challenges Facing Bitmain
Bitmain finds itself in a predicament following several legal issues. One of them is that Dongguan Yongjiang Electronics filed an application against the firm. It requested the court to seize 4 718 710.68 Yuan, equivalent to $676 000 from Shenzhen Century Cloud Core. Shenzhen is both wholly owned and also a subsidiary of Bitmain.
The lawsuit was due to an ongoing trade contract dispute, and recently, the court ordered the freezing of the said sum of money. Additionally, Bitmain’s co-founder, Wu Jihan, recently resurfaced as the firm’s leader, following the ousting of co-founder Micree Zhan three months ago.
According to Zhan’s claims, his removal as a legal representative of Bitmain was without his consent. Zhan said that Wu Jihan did not inform him before sending an email stating its former co-founder’s departure. A year before Jihan ousted Zhan, all of a sudden, he abandoned the firm’s CEO position and assumed a non-executive role on the firm’s board.