Industry Giants Huobi & Bitmain to Cut 50% of Staff

Bitmain and Huobi which are two of the biggest cryptocurrency companies in the world have confirmed plans to dismiss staff in the middle of an industry crunch which has wiped $170 billion off the market value of Bitcoin this year.

Making The Announcement After The Social Media Saga

Bitmain Technology which is based in Beijing is the biggest maker of cryptocurrency mining rigs in the world. The company revealed in a statement that they are undergoing a staff adjustment this year to build a sustainable company. This statement comes after several social media reports alluded to the fact that the company was planning to lay off staff.

In the statement, the company stated that Bitmain is focusing on things that are important to the mission of the company rather than auxiliary things. They also reported that they would double their efforts in hiring the best talents from different backgrounds.

A spokesperson for the company also denied the rumors on social media that stated that the company would dismiss more than half of its employees.

The spokesperson, however, refused to give a definite number of employees planned for dismissal. There were also reported earlier in the week that claimed that Bitmain dismissed its entire Bitcoin Cash developer team, but there has been no statement from the company concerning this.

Huobi Group, on the other hand, is one of the largest cryptocurrency exchanges in the world. A spokesperson for the company stated on Wednesday that Huobi Group is laying off underperforming employees to optimize their staff. The spokeswoman also added that the company is hiring people for its business and developing markets despite the layoffs.

The Main Cause of The Layoff

This layoff comes in the middle of the cryptocurrency market prolonged bearish pattern. Bitcoin which is the most significant virtual currency in the world has fallen more than 70% in value this year. Approximately $500 billion of the value of over 2,000 cryptocurrencies in the market has been wiped off. Bitmain closed its Israel based research center which had over 20 staff on board earlier this month.

There has been no definite number of planned dismissals from both companies, Bitmain has a total of 2,594 full-time employees at the end of June according to the Hong Kong stock exchange company filing. Huobi, on the other hand, has over 1,000 employees.

This layoff action by Huobi and Bitmain follows similar moves by several other industry players such as Steemit and ConsenSys who are letting go of their staff worldwide.

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