Cryptocurrency mining giant Bitmain reportedly has plans to reduce its workforce by another fifty percent.
On Dec. 2, Chinese media outlet Wushuo Blockchain reported that Bitcoin mining rig maker Bitmain has launched a “personnel optimization plan” that will lay off a significant portion of its employees before the next BTC halving, which is expected in May.
The world’s largest producer of cryptocurrency mining machines will reportedly hold an annual meeting on January 17, and it is expected that the layoffs will have been completed before that date.
People familiar with the matter assume that the reason for the layoffs is the upcoming Bitcoin halving, which will cut the number of new coins awarded to miners by half. Dovey Wan, co-founder of Primitive Ventures, wittily dubbed the Bitmain layoffs as the “first halving of 2020.”
In December 2018, Bitmain already endured a massive layoff round, which also impacted around 50 percent of its employees. Bitmain said at the time that the layoffs were part of building a sustainable business and that they would continue to double down on hiring the best talent from a diverse range of backgrounds.
BnC contacted Bitmain regarding these latest developments but had yet to receive a response as of press time. This article will be updated if new comments come in.