Two of the cryptocurrency industry’s largest companies have confirmed that they plan to lay off staff after crypto markets endured a disappointing 2018, according to a Dec. 26 report by the South China Morning Post (SCMP).
Chinese crypto-giant Bitmain Technology is estimated to have 67% of the market for Bitcoin mining equipment and has launched an application with the Hong Kong Exchange and Clearing Limited (HKEX) to go public. Bitmain reportedly let go of their Copernicus development team that was working on the Bitcoin Cash GO client, and rumours on Chinese social media are circulating that the cutbacks could affect up to half of Bitmain’s staff, which at the time of Bitmain’s IPO filing in June stood at 2,594 full-time workers.
According to the SCMP report, the number of layoffs has not been confirmed, and a spokesperson for Bitmain denied the rumors that layoffs could reach 50% of company staff. The company did cede that it is making some adjustments to its staff levels, stating:
“A part of [building a sustainable business] is having to really focus on things that are core to that mission and not things that are auxiliary. As we move into the new year we will continue to double down on hiring the best talent from a diverse range of backgrounds.”
Huobi Group, who operate one of the top three crypto exchanges by adjusted reported volume has also confirmed plans to restructure its operation by firing the less productive of its more than one thousand employees. The company also stressed that it continues to hire new staff for its core business and emerging markets.