Although Bitcoin starts to make a major leap within the past week — making it to the $5,000 range, some crypto-related companies, specifically bitcoin mining farms seemed to be unimpressed with this turn — leading to layoffs of their employees.
Hut 8 Fires 25 Percent of Employees
As reported by the Canadian Broadcasting Corporation (CBC) in April 4, the ‘self-proclaimed largest publicly traded company’ or simply bitcoin mining farm, Hut 8 laid off number of its employees, citing a common reason amongst bitcoin mining companies.
According to the report, Hut 8 announced that they had fired almost 25 percent of their employees on their different branches around the world.
While this might seemed a normal track for crypto mining farms ever since major companies lose their interest once crypto gone bearish, the market worries for the company since it is the second time that Hut 8 laid off most workers.
‘We’re Going Streamline’
Even interestingly, CBC interviewed an ex-employee of the company saying the reason why Hut 8 let go their workers. According to the anonymous employee, most of their team knew about the laying off but did not expected its large number of affected staffs. As a matter of fact, he stated that they are between their streamline process wherein the company will go online– making an obvious take that Hut 8 needed more employees as of now.
However, as explained by them, Hut 8 experienced a massive blow when bitcoin continues to show its bearish state. Due to this, the company decided to fired most members.
“Power prices were going up, and bitcoin was going down. In Drumheller, we were expecting some form of layoff but not in the mass amount that we had. At the time, we were just starting to be up online, be completely streamlined. The plan was maybe laying a couple people off per shift but it ended up that probably half of the data centre ops crews were let go.”
Bitfury Releases Statement
On the other hand, Bitfury — Hut 8’s blockchain partner company, released an official statement about the matter. As cited:
“As Bitfury grows, we are constantly evaluating ways to better empower our company to perform efficiently — in 2019 and beyond. As part of those efforts, we are streamlining our operations in order to help us advance strategic plans to develop innovative software and hardware solutions and focus on other emerging technologies. This week’s actions reflect those efforts. This decision will enable us to lead the company into our next chapter of growth. We sincerely appreciate everything our team members have helped us accomplish.”