The largest manufacturer of equipment for mining cryptocurrency plans to lay off 50% of employees due to financial difficulties. About 1000 people will lose their jobs. The company’s challenges relate to drop in the price of digital money in 2018.
The company has about 2000 employees now, but half of them will be dismissed next week. Users found that many Bitmain employees changed their status to “open to new offers”.
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 Wan ? (@DoveyWan) December 23, 2018
Bitmain is experiencing financial difficulties due to the reduced demand for Antminer equipment and participation in the hard forks Bitcoin Cash cryptocurrency. In this operation, the company lost approximately $740 million. Bitmain was preparing to hold an IPO on the Hong Kong Stock Exchange, but now the attraction of funding was in doubt. HKEX rejected the idea of initial placement of a mining company’s share in order to avoid the risk of its ruin and subsequent delisting.
Experts are concerned about the influence of decision on the cryptocurrency market. If the reduction will happen with the simultaneous withdrawal of the production capacity, then will occur inevitable drop in the hashrate. This, in turn, may affect the cost of digital currencies.