Bitmain has reportedly laid off its entire Bitcoin Cash development team after shutting down its lab facility in Israel. With this it has become 3rd major crypto company to layoff employees in the recent days.
Bitcoin might’ve rebounded after several months of decline, but the woes of crypto companies are not going away anytime soon. Many of them have announced massive layoffs and other cuts to reduce operational costs, and many are doing so now. The latest among them is mining giant Bitmain. The company has reportedly done a second round of layoffs within a few days, this time firing all members of its Bitcoin Cash development team. In first round it had fired about 23 employees after the shutdown of its lab facility in Israel, and now this. Overall the company has laid off about 73 employees in these two rounds.
The news of entire Bitcoin Cash development team being laid off was broken by Blockstream CSO Samson Mow. He said citing some Chinese publications that around 50 workers of the company have been set to go off this week, all related to the Bitcoin Cash efforts of the company. Many of them had joined recently, and only a one week notice was given to all of them. They were reportedly working on company’s Bitcoin Cash GO client.
These reports of layoffs are following some reports regarding redundancies in company’s staff. A few days back there were reports circling on China’s version of LinkedIn that Bitmain is going through a huge wave of redundancies across half of its 2,500-strong workforce. According to Primitive founder Dovey Wan, these reports usually tend to be highly accurate as they’re prepared by employees themselves. In short, we may see many more layoffs from the company in the coming days.
After the recent bear phase layoffs have become a new norm in the blockchain startup space. A few days back ConsenSys laid off about 73% of its employees, and Steemit had also announced plans of shedding about 70% of its workforce.
Now, while Bitmain’s layoffs are still minuscule at this point when compared against these massive reductions, but we shouldn’t forget that they’ve come on the heels of company’s IPO, which will certainly not send a good message to the investors. There have already been a lot of controversies around company’s IPO, and there have also been rumors that regulators in the nations of major cryptocurrency markets are worried about the volatile state of crypto space that emerged recently in media. In short, no matter how minuscule, these layoffs have the potential to backfire at the company.