Though the “crypto winter” buzzword is not common lately, crypto mining hardware maker Bitmain is again planning to cut off half its workforce.
Reported by local industry news outlet Wushuo Blockchain, the decision was fueled by the upcoming halving of Bitcoin, which is expected to occur in May.
Earlier than Bitcoin halving, Bitmain gonna further cut half of its personnel by Chinese New Year 😅 this might be the first “halving” of 2020 I guess ..
It’s commonly beautified as “人员结构优化” (employee structure optimization) for Chinese companies
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) January 1, 2020
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With the upcoming halving, Bitcoin’s mining reward will drop to 6.25 BTC per block from 12.5 BTC per block. Per the architecture of the digital currency’s blockchain, this is done in every four years to control the supply and demand of the digital currency.
Though historical trends show that Bitcoin’s price always surged significantly amid halving, still the market sentiment cannot be accurately predicted.
If the price is unchanged or even surged in two digits, it can make a significant impact on the mining operations, directly impacting Bitmain’s business.
Bitmain currently hires more than 1,000 employees, compared to only 100 by its rival Shenma Mining Machine. Per the report, the step will also streamline the organization’s work structure.
A similar decision was taken in the past
Impacted by the plunge in the crypto market, the Chinese manufacturer also shed 50 percent of its staff by the end of 2018. The company even laid off the entire team working on the development of Bitcoin Cash client and closed its branch in Israel, sacking all the employees.
In a power tussle in the management, the company’s co-founder Micree Ketuan Zhan was ousted in October from the position of executive director.
Meanwhile, the company is also pushing for a public listing in the United States after a failed attempt in Hong Kong.