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Blocktempo.com reported that Bitmain reported that it will lay off half of its employees, focus on optimization of the unprofitable AI business unit, and focus its remaining resources on the development of major mining machine businesses.

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Image from Financemagnates.com

According to Chinese media, Wu talks that the blockchain, the Chinese mining giant Bitmain plans to implement a "staff optimization plan" before the next Bitcoin reward halving, which is expected to reduce labor by 50%.

The report claims that they have recently been confirmed by several people familiar with the matter about the personnel optimization plan, and the following information was disclosed by Bitmain insiders:

At present, the company is operating normally and the cash flow is healthy. The optimization is only a" slimming plan "to halve.

The overall personnel optimization plan has developed to the stage where a related meeting was held by Bitmain leader, Wu Jihan last week, asking department managers to submit a personnel optimization list.

Facing the pressure of halving Bitcoin rewards, cutting redundant staff and streamlining organization

According to Larry Cermak, research director of the cryptocurrency media, The Block, in a tweet in October last year, looking at the total number of employees in all cryptocurrency-related companies, the number one is Bitmain with 1,800 employees.

Compared with the 100-person company of MicroBT, the company of the Whatsminer mining machine, and the size of the 127-person technology development team disclosed by Canaan in the public prospectus last year. Bitmain is indeed in the company's organizational structure appears to be "huge."

According to the plan, January 17th, two weeks later, Bitmain will hold its annual meeting, and the personnel optimization plan is expected to be completed before the annual meeting.

Streamlining the organization can reduce human resources costs and help the company focus on the business of major mining machine development. The layoffs will be “focused optimization” on AI business units that cannot generate profit and will allow the company to maintain its leading edge in the industry through the mining machine business.

Chinese mining giant IPO trends


At present, the Chinese mining giants are moving towards the IPO trend. As one of the three major mining giants, Bitmain has sought to list in Hong Kong by the end of 2018. The amount of funds raised was  3 billion USD but the application failed.

Bloomberg reported that Bitmain was preparing for an IPO in the United States in June last year, but subsequent news and funds raised have not been circulated and confirmed.

However, Canaan, who is also a mining machine manufacturer, successfully listed on NASDAQ in the United States after failing to apply for an IPO at 3 degrees, reaching a fundraising amount of US $ 200 million.

However, with the bear market effect of Bitcoin at the end of last year, the stock code of Canaan, code-named CAN, has fallen from the initial level of $ 8.99 / share, and the current stock price has dropped to $ 6.02 / share.

There have been layoffs in history


During the plunge of the Bitcoin price at the end of 2018, Bitmain also experienced layoffs in half.

At the time, some users said on LinkedIn like Chinese business social media, that Bitmain will target a total of 3,200 employees in 2018 and lay off more than 1,700 employees.

At the time, Bitmain said,

When building a sustainable business, a very important part of it is that we must really focus on the core of the mission and not other miscellaneous items. As we enter the new year, we will continue to double our recruitment of the best talent from all backgrounds.

Back to the layoffs, it sparked heated discussions in the community. While Dovey Wan, co-founder of blockchain venture capital firm Primitive Ventures, tweeted that this was a "halving event" that preceded Bitcoin rewards. ":

Before Bitcoin halving occurs, Bitmain will lay off staff before the Chinese New Year. I think this may be the first" halving "in 2020. For Chinese companies, it is usually Beautify as "Personnel Structure Optimization

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