- According to Chinese media, Bitmain CEO Jihan Wu will be resigning from his position
- The reports also state that Bitmain is gearing up to lay off up to 500 members of staff
According to reports by Chinese media, Jihan Wu and Jenke Group will soon be resigning as CEO of Bitmain.
The reports were made by Odaily, a Chinese news source, which claims that an unnamed source revealed to them that the company is ‘in a transition period’ and that employees of the mining ASIC producer aren’t sure about the possible future of the current leadership system.
The report even gives information about a possible successor to the CEOs.
Apparently, the person in question has the surname of ‘Wang’.
This comes following previous reports that Wu had been demoted from the position of a director at the company to a supervisor.
There have also been reports that Bitmain will be laying off a significant percentage of its staff and that mining operations will be shutting down. The Odaily report also claims that the company’s antminer S9s will be sold off in due time.
The recent downturn in the bitcoin price has severely affected a number of firms, including Bitmain.
ConsenSys is reportedly laying off about 60 percent of their staff and many other firms are reportedly laying off staff.
In the case of Bitmain, up to 500 employees are reported to be getting laid off. The layoffs will be coming from the AI, mining, overseas departments, and BCH Copernicus client teams.
This comes after Bitmain has seen staff cuts from their BCH developer teams.
So far, Bitmain has not made any official statement about Jihan Wu’s reported resignation or about their layoffs but sole confirmation is expected in the next few weeks.
The recent Bitcoin price crash has had a significant ripple effect in the Blockchain industry.
The decline in the price of bitcoin means that it is less profitable to mine coins. As a result, the sales of mining technology has taken a huge hit and companies that received a majority of their income from the sales of such technology, such as Bitmain, have been some of the worst affected.
Despite the recent slump on Cryptocurrency, the blockchain industry is still branching out and finding relevant use outside Cryptocurrency.
Now, only time will tell if the markets will recover and what effect that will have on crypto-firms.