China’s Bitmain Technologies and Huobi plan lay-offs as cryptocurrency crunch begins to bite
- Planned lay-offs come amid a bear market in cryptocurrencies, with 70 per cent knocked off bitcoin’s value in 2018
Two of the world’s biggest cryptocurrency companies have confirmed lay-off plans amid an industry crunch that has seen US$170 billion wiped off bitcoin’s market value this year.
Beijing-based Bitmain Technologies, the world’s biggest maker of cryptocurrency mining rigs, said in a statement that the company is undergoing “some adjustment to our staff this year” as it continues to build a sustainable business, following reports on Chinese social media that it was planning job cuts.
“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,” said Bitmain in the statement.
A Bitmain spokesman on Wednesday denied rumours on Chinese social media that the company will sack more than half of its employees, but declined to specify exactly how many lay-offs are planned.
Meanwhile, a spokeswoman for Huobi Group, operator of one of the world’s biggest cryptocurrency exchanges, said on Wednesday that the company is “optimising staffing” by cutting its worst-performing employees. But she added that the Beijing-based firm is still hiring people for its core businesses and emerging markets.