As the price of Bitcoin and cryptocurrencies have fallen by as much as 90 percent from their all-time highs, crypto companies are starting to feel the strain.
According to the South China Morning Post, Chinese crypto giants Huobi and Bitmain are planning staff layoffs owing to the almost year-long crypto winter.
The moves come after Bitcoin has lost over $170 billion from its market value this year.
What’s Happening at Bitmain and Huobi?
The largest maker of crypto mining rigs, Bitmain Technology, said that it is undergoing “some adjustment to our staff this year” while focusing on building a more sustainable business.
There were reports on Chinese social media that the Beijing based company will be cutting half of its staff.
The company confirmed the rumors but didn’t specify how many employees would be let go.
Bitmain’s official statement read:
“A part of that is having to really focus on things that are core to that mission and not things that are auxiliary. As we move into the New Year, we will continue to double down on hiring the best talent from a diverse range of backgrounds.”
On the other hand, a Huobi Group spokesman noted on Wednesday that the company is “optimizing staffing.”
It will be cutting its worst-performing employees but would continue to hire people for its core businesses and emerging markets.
Is the Crypto Industry Changing Drastically?
The crypto bear market has declined to subside this year.
Even as 2018 is coming to an end, there are no definative signs of bullish reversals in the market and Bitcoin alone has lost over 70 percent of its value.
The over 2,000 cryptocurrencies available in the market have lost more than $500 billion in combined market valuation.
As of June 2018, Bitmain had 2,594 full-time employees, 20 of whom are already out of a job as the company closed its research center in Israel.
Huobi has more than 1,000 employees.
Neither company specified the number of people they will let go, but the impact could be significant.
This year, Steemit also cut back on staff and software production studio ConsenSys is bidding farewell to 13 percent of its 1,000 people workforce.