The bearish market of 2018 is set to hit its lowest note as top blockchain companies in the world such as Bitmain Technology and Huobi plans to lay off some of its work-force.
Bear Market Doing More Damages than Expected
As the year 2018 draws to a close, the effect of the bear market continues to implode beyond everyone’s expectations and companies have been quick to shelve away initial plans of expansions and recruitment.
According to reports by local news outlet, South China Morning Post (SCMP), giant Chinese-based company and major supplier of Bitcoin miners, Bitmain, is now on the verge of laying off some of its employees to palliate the drastic effect the bearish nature of the crypto market was having on the blockchain companies and crypto startups in general.
The plunge of the crypto market has seen the king of cryptocurrency, Bitcoin, BTC, lose more than 70 per cent of its peak value, and the dip in the market has consequently seen Bitmain lose millions of dollars, incurring costs with little profits.
A host of other companies has also opted to slim down expenses, salvaging whatever is possible to ensure optimum efficiency. ConsenSys, Ethereum’s blockchain subsidiary has revealed its decision to lay off some of its staff, along with blockchain-based social network, Steemit.
“We must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are. We now find ourselves occupying a very competitive universe…We must recognize that what got us here will probably not get us there, wherever ‘there’ is,” Joseph Lubin, CEO of ConsenSys had said.
Huobi and Bitmain’s Reorganization
The two companies have been reported to be planning a major layoff of staffs have been quick to make note expansion of both companies would continue. Bitmain Technology, in particular, has been quick to deny rumours in the Chinese social circles that it was planning to lay off more than half of its employees. While the company has refrained from giving an exact number of employees that would be relieved, it has assured that the media have inflated the numbers.
If anything, Bitmain has suggested only a ‘minor restructuring’ would take place. Huobi, with more than a thousand active staffs, has also taken a similar stance. An excerpt of the statement from Bitmain explaining their planned restructuring read:
“A part of that 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.”