Bitmain filed an application to go public on the Hong Kong Stock Exchange a few months ago. At the time, the market was struggling, but the mining giant probably did not expect the current turn of events. The rumored Bitmain layoffs are turning out to be true and they are even reaching the company’s offices back in China.
An announcement from the company was needed since many people demanded information about the Bitmain layoffs. After much delay, Bitmain addressed the situation as a representative stated that:
“Adjustments were necessary in order to continue towards the path of long-term development. Our goal of a sustainable and scalable business can only be accomplished if we focus on elements, which are key to our mission and not things which are auxiliary.”
The statement came shortly after a heated discussion arose on the Chinese LinkedIn, Maimai. The discussion was started by an anonymous account who created a thread in which he was looking for information about the Bitmain layoffs.
The bitmain layoffs were originally thought to be just another rumor
This post was seen as a ruse at first, but after reaching more than 200 replies, some by verified Bitmain employees, people began to monitor the situation more carefully. The thread further exploded when a verified account stated that all the rumors for the Bitmain layoffs are true and they’ll start as soon as December 24th.
It’s impossible to know the scale of the layoffs, but some Chinese employees have already openly started discussing their respective layoff compensation packages. There is also no way of actually telling which division will have the largest amount of layoffs. The company’s main business is the creation of miners, but other business projects also include blockchain and AI projects.
Bitmain is joining other huge names like Steemit and ConsenSys who have recently disclosed that they are laying off a huge percentage of their active personnel. Steemit’s announcement stated that more than 70% of the employees would be laid off.
Many experts believe however, that this round of Bitmain layoffs was unavoidable. It was in fact, well timed with the bear marke. The company’s rapid expansion over the last year would have demanded layoffs no matter the market conditions. At the beginning of 2018, Bitmain officially had a little over 1000 people working for the company on all projects. The IPO prospectus which was released on September, revealed no less than 3100 employees.
This effectively means that some of the company’s business lines have seen an expansion rate of over 200%. Despite the layoffs, Bitmain stated:
“We are still looking to hire new and exceptional talent. As we move on into 2019, we will double down our efforts into hiring the best talent from all backgrounds we find acceptable.”
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