Bitmain Responds to Layoff Rumors From Ousted Co-Founder Zahn

Bitmain Responds to Layoff Rumors From Ousted Co-Founder Zahn

Ousted Bitmain co-founder Micree Zahn took to Weibo on Monday to talk out in opposition to a reported Bitmain “personnel optimization plan” which might purportedly see round 500 Bitmain employees dismissed by January 17. Chinese language media broke the story final week citing inside sources on the bitcoin mining colossus, certainly one of which claimed poor monetary efficiency of the corporate’s AI arm was a part of the explanation for the winter slimming. Zahn maintains the reported plan is unreasonable, however Bitmain’s official response neither confirms nor denies the downsizing.

Additionally Learn: Bitmain and Canaan to Reveal 5nm Bitcoin Mining Chips in 2020

Reported Dismissals

The reported layoffs, which might see about half of Bitmain’s workers out of labor for the winter, are alleged to be resultant of the approaching bitcoin halving and in addition poor efficiency of the AI finish of the corporate, the place Zahn is alleged to have put a lot of his focus after co-founder Jihan Wu stepped down from his submit early final yr. In October, Wu famously returned and had Zahn eliminated. In his Weibo submit Zahn maintains:

In comparison with Bitmain’s revenue, this price is just not giant. Taking a step again, even when the revenue is troublesome, the corporate’s present capital and asset reserves, the annual expenditure of 500 million Yuan will probably be totally inexpensive.

The 500 million quantity is a determine Zahn makes use of hypothetically, estimating that every worker to be minimize earns 1 million yuan (~$144,000) a yr, and that the corporate can afford the price.

Bitmain Responds to Layoff Rumors From Ousted Co-Founder Zahn
Zahn: “To all workers of Bitmain: I’m firmly against layoffs! We don’t want to put off folks!” The final a part of the title refers back to the motion as being “suicidal.”

Bitmain Responds

Information.bitcoin.com reached out to Bitmain concerning the reported layoffs, and Head of PR & Neighborhood Relations on the firm Nishant Sharma clarified:

Relying on market circumstances and enterprise developments, we proceed to make changes to our workers. In consequence, we are also constantly looking out for brand spanking new expertise and welcome candidates from all walks of life.

Commenters on Zahn’s public discover additionally shared their ideas, with one consumer remarking to favorable reactions that “Optimizing folks can scale back the corporate’s working prices, permitting some workers who need to be idle to depart rapidly, and on the similar time enhance the strain of every division, in order that work effectivity is quicker and the output is extra apparent. I feel Wu Jihan did this proper. These shareholders agree.”

One other added: “Now for Bitmain, it’s vital to extend the analysis and improvement of mining equipment … Wait till you change into the chief on this trade, after which begin to put money into the second sector, equivalent to AI and different money-burning industries.”

What are your ideas on Zahn’s submit and the reported layoffs? Tell us within the feedback part beneath.


Picture credit: Shutterstock, honest use.


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Tags on this story
ai, BCH, Bitcoin, Bitmain, BTC, China, Halving, Jihan Wu, layoffs, Micree Zhan, mining, Weibo

Graham Smith

Graham Smith is an American expat dwelling in Japan, and the founding father of Voluntary Japan—an initiative devoted to spreading the philosophies of unschooling, particular person self-ownership, and financial freedom within the land of the rising solar.

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