Things seem to be far removed from the Bitcoin Mining Bitmain company as several reports point to another round of employee layoffs at the company. This news follows the reports that the companyThe IPO also died in the water after the rumors of the third quarter losses that were grossed over $ 700 million.
Bitmain on Firing Spree
According to Blockstream CSO, Samson Mow, rumors are swirling that the mining giant has fired the entire Copernicus squad. Mow cited Chinese LinkedIn posts published by company employees. The Copernicus team was responsible for developing the Bitcoin Cash GO client for Bitmain.
there is a post on Chinese Linkedin (usually very accurate, published by the same employees) that says that Bitmain will start a layoff next week … 😳😳😳
A separate entry said that the plan is for over 50% of its staff ???! pic.twitter.com/b0ZSBuPX4d
– Dovey Wan 🦖 (@DoveyWan) December 23, 2018
In another report, other messages indicate a much larger reduction in work, which could affect up to half of Bitmain's workforce. At the beginning of the month, Bitcoinist reported that the company has closed its research division in Israel. More than 20 employees have lost their jobs after the move.
Bitmain has quietly fired the 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
Bitmain is betting on Bitcoin Cash 00, a move that now seems to have failed, causing serious losses to the company. Rumors of massive losses for the third quarter of 2018 are also random huge doubts on the financials of the company and will probably silence its IPO plans.
The second half of 2018 proved to be a challenge for the company. From the massive fall in BCH prices to the Bitcoin hash cash wars, Bitmain's bitcoin mining monopoly could be in danger.
Recently, the US company IT UnitedCorp Sued Bitmain with Kraken, Bitcoin.com and Roger Ver for alleged manipulation of the BCH network.
It's the season of layoffs
Bitmain is only the latest in a series of mass layoffs in the cryptocurrency and blockchain technology sector. At the beginning of this month, Consensys has fired 100 of its employees (around 10% of the entire staffing force) as the price of Ethereum 00 it collapsed from a historical high of $ 1,400 in January to $ 83 at the beginning of December. Reports also indicate that the company has not finished with downsizing.
Others like Steemit and Ethereum mobile dApp maker Status have significantly reduced the workforce in recent months. For many of these start-ups, the reason for their downsizing is directly related to the dramatic decline in cryptocurrency prices with a drop of over 90%.
Strangely, despite the increasing layoffs, the latest figures show that talent is still in demand in space. A recent Glassdoor survey found that job openings in the cryptocurrency sector are underway Maximum of 18 months.
What do you think the situation of Bitmain reveals on the status of similar companies in the scene of the cryptocurrency at the moment? Please share your thoughts with us in the comments below.
Image kindly granted by Twitter (@DoveyWan and @Excellion), Shutterstock