Bitcoin Companies Purge: Bitmain and Huobi Lay Off Workers

After the much-publicized layoffs at ConsenSys, SpankChain, and Steemit, mining equipment manufacturer Bitmain is reportedly cutting down 50 percent of its total workforce, alongside shutting down its entire Bitcoin Cash-focused division.

As per a report on SCMP on Dec. 26, Bitmain's impressive year saw the mining giant make revenues of over $4 billion, grow its staff to 2,900 employees, attain a valuation of $8 billion, and work towards a listing on the Stock Exchange of Hong Kong.

The riches are failing to prove sustainable for floating Bitmain's formidable workforce, in particular, its BCH division.

Bitmain has quietly laid off their entire Copernicus team.

Bitmain swiftly issued its statement shortly thereafter, confirming the development but denying speculation of a 50 percent job cut.

The purge began with Bitmain's Israeli office when 20 staffers were left jobless after the research-only division was shut down.

At the time of writing no exact number of planned job cuts are known; but if comments from a current staffer are considered, the layoffs will be spread across all business verticals in Bitmain's business-which has grown from manufacturing miners to producing hashing power for the Bitcoin and Bitcoin Cash networks, artificial intelligence, and mining pools.

Bitcoin Cash proponent Calvin Ayre, who engaged in a hash war with Bitmain and Roger Ver earlier this year, referred to Bitmain's decision to deploy massive hashing power as "Disastrous." He further thinks the firm's days at the top are now over.

Bitmain's disastrous decision to hash dump has ruined their financial situation and has them dragged into US civil litigation.

A spokesperson confirmed the development to SCMP, but similar to Bitmain's comments, stated hiring for core roles and the emerging markets division continues.