The largest manufacturer of mining equipment Bitmain, which also owns the two largest mining pools, in the near future can reduce the number of working personnel in half.
Information about the possible reduction of the workforce in Bitmain first appeared in the microblogging social network Twitter crypto entrepreneur Dowi Wan. Wang, in turn, refers to the messages of employees of the company at the site Maimai – Chinese equivalent of LinkedIn.
According to industry representatives, the reason for massive layoffs is Bitmain’s financial problems. Due to the stagnation on the crypto market, the company in the third quarter of 2018 suffered a loss of $ 750 million. Earlier this month, she even had to close a research office in Israel.
On December 26, BlockStream Operations Director Samson Mou said in his Twitter microblog that Bitmain staff could be reduced not by 50%, but by 85%. The reason is serious financial losses. The company is considering the possibility of closing secondary business areas. Under the blow may be a group of employees who is engaged in research in the field of artificial intelligence.
Temporary cryptocurrency reserves may temporarily keep Bitmain afloat. One of the leaders of the American investment fund MultiCoin cryptocurrency, Kyle Samani, reports that the manufacturer has a million litecoin and Bitcoin Cash in stock. And in order to survive a difficult period, the Bitmain management can realize some of the reserves. In turn, this can provoke a serious drop in the rate of LTC, BCH and even the entire market.
According to unofficial data, Bitmain has more than 3,100 employees. And only in 2018 more than two thousand workers were hired.