Chinese mining giant Bitmain Technology and cryptocurrency exchange operator Huobi Group have both announced plans to lay off staff but for different reasons, per reports on the South China Morning Post (SCMP). Bitmain revealed its intention in a statement quoted by the SCMP, calling the layoffs a “minor adjustment” as it restructures to build a sustainable business following the downturn in the market.
The firm added:
A part of that is having to really focus on things that are core to that mission and not things that are auxiliary. As we move into the new year, we will continue to double down on hiring the best talent from a diverse range of backgrounds.
While the rumors making the rounds in Chinese media says about half of Bitmain’s employees might find themselves unemployed at the end of the current restructuring, a Bitmain spokesman reportedly denied the suggestions, but refused to share the exact number of employees that could be axed. Another anonymous employee, cited by SCMP, claims the layoffs would cover most of Bitmain’s divisions but he wasn’t sure of the exact number of employees to be sacked.
In like manner, Chinese company Huobi Group, which SCMP notes have over 1,000 employees, will be joining Bitmain on the chopping block as it seeks to reorganize its structure for the new year by cutting off redundant employees. Unlike Bitmain, Beijing-based Huobi Group was quick to point out that it will continue to expand its team “for its core businesses and emerging markets.”
The unexpected market crash has made it difficult for many blockchain companies to be sustainable, leading to some cutbacks and layoffs from firms.
Earlier this month, as CCN reported, Ethereum production studio ConsenSys went through a form of restructuring, as the firm had to axe60% of its workforce in a bid to streamline its business amid the bearish market.
“We must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are. We now find ourselves occupying a very competitive universe…We must recognize that what got us here will probably not get us there, wherever ‘there’ is,” ConsenSys CEO Joseph Lubin wrote in a letter to his employees.
Blockchain social platform Steemit was not spared either. Citing the collapse of the cryptocurrency market, Ned Scott, CEO of Steemit said the startup was firing 70% of its team noting that it was becoming difficult to improve the blockchain with the “growing costs of running full Steem nodes” and the lower “fiat returns” on their “automated selling of STEEM.”
Images from Shutterstock.
Last modified: May 20, 2020 1:19 PM UTC