Beijing-based Bitcoin mining giant Bitmain has laid off its entire Copernicus team, which was working on the development of Bitcoin Cash client, according to a tweet by Blockstream Chief Strategy Officer and former BTCC Chief Operational Officer Samson Mow.

https://twitter.com/Excellion/status/1076942377963700224?s=09

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The news surfaced as rumors were already going on in the crypto market that the Bitcoin mining hardware giant is already planning to lay off 50 percent of its staffers.

⚠️⚠️⚠️ there’s post on Chinese Linkedin (usually very high accuracy, posted by employees themselves) saying Bitmain will start a layoff the coming week … ??? A separate rumor said the plan is for more than 50% of its headcount ???! pic.twitter.com/b0ZSBuPX4d — Dovey Wan ? (@DoveyWan) December 23, 2018 Suggested articles Swissquote Joins oneZero EcoSystem to Bolster Liquidity OfferingGo to article >>

Bitmain has nearly 2000 employees, and such a sudden layoff will definitely put a dent on the crypto industry.

Tough Business Decisions

Although not officially confirmed, it is very likely that the falling prices of Bitcoin have pushed the company to take such a drastic step. Moreover, the plunge of Bitcoin Cash since November also affected the firm as it has a substantial holding of the coin. The firm is also struggling with its upcoming IPO in the falling market, which was considered to be a lucrative one earlier.

Layoffs Becoming a Norm?

However, Bitmain is not the sole company to have taken such a drastic step amid the market turmoil. US-headquartered ConsenSys laid off 100 employees – nearly 10 percent of its workforce – earlier this month and is reportedly eyeing for further layoffs.

Status, an Ethereum-based mobile app developer, has officially announced that the company would be cutting 25 percent of its workforce (around 25 employees). The startup’s cofounder Jarrad Hope, in a town hall meeting, detailed that the company’s decision was fueled by its diminishing war-chest and also urged employees to take pay cuts.

Another blockchain company called Steemit also joined this race and reduced about 70 percent of its working employees. Steemit CEO Ned Scott took to his personal YouTube channel to convey this tragic news.

Although these companies are only taking hard business decisions to stay in business, blockchain firms like ETCDEV were forced to shut their doors this year amid the market crash.