Bitmain Lays Off Nearly 85% of Its Workforce

Earlier, it was reported that bitcoin mining machine maker Bitmain had a significant layoff this week. The company later rebutted that the rumors were untrue, indicating that layoffs were adjusted for normal year-end personnel.

Dovey Wan, founding partner of Primitive Ventures, a blockchain investment company, tweeted on the 23rd that the number of layoffs could be up to 50%. Yesterday she tweeted the actual from a local source with the aftermath which laid off nearly 85% of employees.

However, the source believes that even if the overall cryptocurrency market did not decline, this round of adjustment was inevitable because Bitmain expanded too rapidly this year. He said that there were about 3,100 people in Bitland prior to the layoffs, even hundreds more than those disclosed in the September prospectus. “But at the beginning of this year, there were only about 1,000 people.”

Bitmain later released a statement that “some staff adjustments are being carried out this year” in order to continue to build a long-term, sustainable, and scalable business. However, the company said that the new year will continue to double the number of talented people from different backgrounds.

The statement said that part of the reason for the layoffs is that the company must really focus on the core business, not some auxiliary things. This is roughly the same as what was said in the middle of this month when Bitmain closed its development center in Israel. At the time, Bitmain dismissed all 23 development center employees. Gadi Glikberg, vice president of Bitmain, said that because of the performance of the cryptocurrency market in the past few months, Bitmain re-adjusted its business focus.