Months after filing for an IPO on the Hong Kong Stock Exhange and just days after news emerged that the listing was in doubt, Bitmain has confirmed reports of company layoffs that have been circulating online for a week.
According to a Bitmain company representative: "There has been some adjustment to our staff this year as we continue to build a long-term, sustainable and scalable business. A part of that is having to really focus on things that are core to that mission and not things that are auxiliary."
Reports of layoffs had emerged on Maimai, the LinkedIn of China, on December 17. More than 200 comments followed on the site, with verified Bitmain employees confirming that layoffs would begin the week of December 24.
One verified Bitmain employee claimed "It’s affirmative. The layoff will start next week and involves more than 50 percent of the entire Bitmain’s headcount." Another added, "Some departments have to be let go entirely."
According to a CoinDesk source who is a current Bitmain employee, the company is reorganizing its core mining operations. It will also reorganize non-core projects related to blockchain and AI. Bitmain had increased headcount significantly in 2018, growing from 1,000 people at the beginning of the year to 3,100 at the peak.
As Bitmain looks to the future, eliminating redundancies and operational efficiency have been reprioritized.