Bitmain confirms layoffs as the cryptocurrency mining fall pinches hard

Bitmain denies that half of its workforce is being laid out – but confirms that job losses are incoming…

One of the inevitable by-products of the sizeable fall in cryptocurrency prices across the back end of 2018 has been a related reduction in crypto mining levels. Guestimates suggest, for instance, that the price of Bitcoin needs to be sitting around the $4500-5000 mark for it to be profitable to mine, and then only if you have the scale of operations to make that work.

Now, crypto mining giant Bitmain isn’t short on scale, but that Bitcoin price is another matter. After a couple of days bobbling north of $4000, the price of the currency stands at just under $3900 at the time of writing.

Bitmain has been hit by rumours of big losses in recent months as a part consequence of the price collapse. And whilst it’s not outright admitted those at the moment, it’s certainly confirmed that there are problems.

Furthermore, it’s confirmed that it’s going to be laying off staff as a consequence. And whilst the company has denied a rumour that over half of its workforce is set to be affected, there are clearly going to be changes of note.

That said, Bitmain was bullish in a statement is released, suggesting further growth in the future. “A part of that is having to really focus on things that are core to that mission and not things that are auxiliary” it wrote, with regards the changes. “As we move into the new year we will continue to double down on hiring the best talent from a diverse range of backgrounds”.

We wait and see if that’s press release talk or something more substantive. It’s certainly challenging times…

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