In what seems like the impact of the approaching Bitcoin halving, crypto mining company Bitmain is considering cutting off its workforce by half ahead of the scheduled May 2020 event.

As reported by a local media outlet, the decision to downsize the approaching BTC halving event inspired the workforce.
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Earlier than Bitcoin halving, Bitmain gonna further cut half of its personnel by Chinese New Year ? this might be the first "halving" of 2020 I guess ..

It's commonly beautified as "人员结构优化" (employee structure optimization) for Chinese companies</p>
— Dovey 以德服人 Wan ? ? (@DoveyWan) <a href="https://twitter.com/DoveyWan/status/1212388775889752066?ref_src=twsrc%5Etfw">January 1, 2020</a></blockquote>


Bitmain believes that if the price remains constant or goes up by two digits, it would affect the mining operations and directly affect its business. Currently, Bitmain has more than one thousand employees, which is more than ten times the capacity of its competitor Shenma Mining Machine. According to the report, cutting down the workforce will also reorganize the organization’s work arrangement.
<h2>Bitmain Made a Similar Decision Previously</h2>
The decision to cut down the workforce is not new to Bitmain. Towards the end of 2018, the company slashed its workforce by 50 per cent following a drop in the crypto market. The move affected all employees in its Bitcoin Cash client section, closed its Israel-based branch, and sent all the workers home.

The Chinese crypto manufacturing company has also experienced a power struggle in its management. Last October, co-founder Micree Ketuan Zhan was overthrown from the role of executive director. Bitmain is currently aiming for a public listing in the US after the same attempt failed in Hong Kong.
<h2>The Halving May or May Not Pump BTC Price</h2>
The upcoming Bitcoin halving has left mixed reactions in the crypto space, with some people hoping that it might lead to a price upsurge. On the other hand, some <a href="https://www.cryptoknowmics.com/crypto/blockstream-executive-predicts-bitcoin-at-50-000-any-time-soon/">enthusiasts</a> believe that the price might not ascend.

According to CoinDesk’s Director of Research Noelle Acheson, there is a bit of scepticism as to whether the event will lead to a bull run.

“Some industry insiders have hinted that the halving could be negative if it reduces miners’ profitability and forces many of the smaller ones out of the market,” Acheson suggests.

On the other hand, some analysts argue that Bitcoin is a deflationary currency and therefore, the May 2020 halving would lead to a scarcity that could eventually propel the price.

According to crypto enthusiast and co-founder of Morgan Creek Digital Assets Anthony “Pomp” Pompliano, the price of Bitcoin could hit $100,000 by 2021.

“Supply-Demand economics remain valid. They are a great way to determine the market price. So, if the demand for a fixed-supply asset increases, we continue to see price appreciation,” Pomp earlier opined.

Bitmain Mulls Laying Off 50% of Its Workforce Ahead of BTC Halving

Tony is a writer and a crypto enthusiast. He discovered cryptocurrency in 2017 and believes it's one of the ways to make the world a better place.  A graduate of creative writing, he synthesizes blockchain and cryptocurrency topics in a way he only can. Reach him on Twitter @Wordsvan

Bitmain Mulls Laying Off 50% of Its Workforce Ahead of BTC Halving

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