The recent cryptocurrency market crash and Bitcoin price slump has severely hit the businesses of mining firms across the globe, and the story of Chinese Bitcoin mining giant Bitmain is no different. Amidst the crypto market slowdown Bitmain has finally considered to shut down its operations in Israel, reports local business publication Globes.
The report notes that the China-based mining giant has closed its development center Bitmaintech Israel, which the company started two-years back in Ra’anana. All the 23 staff members and employees have been laid off, with the head of the development center, VP Gadi Glikberg, also asked to depart.
The company blames the overall bearish market and the crash in the Bitcoin price as the reason behind its closure. On a departing note to his employees, Glikberg said:
“The crypto market has undergone a shakeup in the past few months, which has forced Bitmain to examine its various activities around the globe and refocus its business in accordance with the current situation.”
Although Bitmain’s major business is developing and manufacturing mining rigs and other equipments, the Israeli office formed in 2016 majorly focused on developing the ConnectBTC mining pool. Moreover, this office also worked on the artificial intelligence technology for the company’s Sophon projects.
It looks like in the last five months, the scenario has changed drastically for Bitmaintech Israel. In July 2018, Globes reported that the Bitmain Israel was reportedly planning to triple its staff by recruiting 40 more researchers. Well, the drastically worsening condition of the crypto market has in fact forced to the company to take a completely opposite step.
LayOffs In the Crypto Sector Getting More Common
Bitmain is not the only giant firm in the crypto space to layoff its employees. In fact, the trend after November’s crypto market crash is getting more prominent. Buckling under the bearish crypto market, blockchain startup Steemit had to cut-down its staff by 70 percent.
In a YouTube address, Steemit CEO and founder Ned Scott said:
“While we were building out our team over the last many months we have been relying on projections of basically a higher bottom for the market and since that’s no longer there, we’ve been forced to lay off more than 70 percent of our organization and begin a restructuring.”
Last week the most popular Ethereum production studio ConsenSys announced cutting down 13 percent of its staff members. Joseph Lubin, founder of ConsenSys called this a part of streamlining its business and “re-focusing on priorities”.
“Excited as we are about ConsenSys 2.0, our first step in this direction has been a difficult one: we are streamlining several parts of the business including ConsenSys Solutions, spokes, and hub services, leading to a 13% reduction of mesh members,” Lubin told CoinDesk.