Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The ousted co-founder of Bitcoin mining giant Bitmain â Micree Zhan â has issued a statement opposing purported labor cuts at the firm.
Micree Ketuan Zhan, the co-founder of Bitmain who was recently dismissed by Bitmainâs current CEO Jihan Wu, has publicly opposed layoffs at the firm.
As Bitmain â the worldâs largest cryptocurrency mining firm â is reportedly planning to cut its workforce by 50% before the next Bitcoin (BTC) halving, Zhan claimed that he is âfirmly opposed to layoffsâ in a Jan. 6 Weibo post addressed to Bitmain employees.
Zhan argues that Bitmain cannot lose its leadership in a highly competitive market
Apart from claiming that Bitmain does not need to lay off its team, Zhan argued that such a move would basically be suicide for the company. He wrote:
âTo all employees of Bitmain: I am firmly opposed to layoffs! We don't need to lay off people! We cannot play suicide!â
Zhan argued that Bitmainâs cash flow is healthy, and âthere is a substantial amount of virtual cryptocurrency.â Zhan, who is Bitmainâs biggest shareholder with a reported 60% stake, outlined the companyâs leading position in the highly competitive cryptocurrency mining market. He stressed that cutting Bitmainâs staff in half would just allow other mining firms to grab up Bitmainâs market share.
Bitmain reportedly started cutting staff this morning
Meanwhile, Bitmain âstaff optimizationâ allegedly started this morning, according to local reports on Jan. 6. Bitmain has reportedly provided its employees with a compensation plan, while some employees have signed a termination agreement. Additionally, a number of headhunters have purportedly started communicating with resigned Bitmain employees.
When reached for comment, a Bitmain spokesperson stated, âDepending on market conditions and business developments, we continue to make adjustments to our staff. As a result, we also are continuously on the lookout for new talent and welcome applicants from all walks of life.â
âBitmain Dramaâ
The news brings a fresh twist in a series of events referred to as âBitmain Dramaâ by the crypto community. After Zhan was dismissed by Bitmain CEO Jihan Wu in November 2019, the executive subsequently initiated court proceedings against the company in a bid to restore his voting control of the firm.
Meanwhile, Wu recently resurfaced as Bitmain CEO after both he and Zhan announced plans to step down from their co-CEO positions in January 2019.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.