Employees of the largest manufacturer of mining hardware, Bitmain, protest against a wave of layoffs. The managing partner of Primitive Ventures Dovey Wan posts this on her Twitter. The crypto lady published a post including a photo of the protesters. The banner says that employees oppose illegal layoffs.
Poor Bitmain employees who have been “optimized” out trying to protest as their last resort …
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) January 9, 2020
“Earlier than Bitcoin halving, Bitmain gonna further cut half of its personnel by Chinese New Year this might be the first “halving” of 2020 I guess …”, – such a post appeared on Dovey Wan’s Twitter on January 1.
According to her, the wave of cuts is marked by Bitmain managers as an attempt to optimize the organization. At the same time, the information appeared on the network according to which the manufacturer refused DMG Blockchain services. The latter was into the company’s Texas mining center.
According to the anonymous source, the reason for the breakdown of partnerships was the lack of resources at Bitmain. The official version of the cessation of work was the inability to determine the cost of the management services of the DMG Blockchain team.
The situation inside the company remains tense also due to the struggle of its cofounders, Micree Zhan and Jihan Wu for the post of CEO in particular. The latter headed the company at the end of October 2019 again. In early January, the position of a legal representative of Bitmain was carried from Jihan Wu to another specialist – Luyao Liu. Such changes are taking place against the background of the company’s preparation for an IPO.
History Repeats Itself
Note, Bitmain managers also carried out a series of mass layoffs that take place a year ago. The decision was made due to the large losses of the company and due to the prolonged crypto winter. As noted at the time, the company needed to be optimized, since its growth over the past year has been huge.
Before this, the rumors appeared in the network that Bitmain was going to reduce half the entire staff in the amount of 2.5 thousand people. That time crypto lady Dovey Wan published the post that the mining company takes such measures because of financial problems provoked by the cryptocurrency market drop.
there’s post on Chinese Linkedin (usually very high accuracy, posted by employees themselves) saying Bitmain will start a layoff the coming week … 😳😳😳
A separate rumor said the plan is for more than 50% of its headcount ???! pic.twitter.com/b0ZSBuPX4d
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) December 23, 2018
Subsequently, it became known that the hardware manufacturer lost about $ 500 million in 2018.
However, Bitmain specialists have already made it clear to the crypto community that the company is going through hard times. Therefore, as we can see, the situation is not getting any better inside the company operation this year. In 2019, the problems did not end. In May, the information appeared that Bitmain had “lost” almost 90% of the hashrate.