The Chinese company Bitmain has confirmed the upcoming downsizing of staff, which will affect including its office in Beijing, CoinDesk reports.
There has been some adjustment to our staff this year as we continue to build a long-term, sustainable and scalable business. A part of that is having to really focus on things that are core to that mission and not things that are auxiliary.
Rumors that the company could cut up to half of its employees first appeared in mid-December on the Maimai platform, the Chinese clone of LinkedIn. The post asked, in particular, whether someone has insider information about upcoming cuts in Bitmain. It collected about 200 responses, including from people who were verified as employees of the company and confirmed that the layoffs will begin this week, starting also the discussion of compensation packages.
So, one of the employees said that some Bitmain divisions would be completely dissolved. The publication also leads one of the employees of the Beijing office of the company, who, on an anonymity basis, also said that staff is currently being cut, however, since this is an ongoing process, it could not confirm its scope.
This is an operational adjustment. Some projects will be entirely gone so it’s hard to calculate a precise percentage at this stage. It’s not hard to infer which division is suffering the most. Bitmain’s core business is making miners. Other business lines are just blockchain and artificial intelligence.
The source added that these “operational adjustments” affect almost all areas of the company's business activity, including the mining pool. Also, certain changes are waiting for the division engaged in the production of equipment for mining, and the overall goal is to increase operational efficiency.
Now Bitmain has about 3,100 people, even several hundreds more than what was disclosed in the IPO prospectus in September. But there were only about 1,000 people at the beginning of the year.
According to him, given the incredibly rapid expansion of Bitmain earlier this year, all these events would have been inevitable even without a general fall in the cryptocurrency market.
Nevertheless, Bitmain also continues to hire new people, constantly searching for new talents, he added.