Micree Zhan, ousted co-founder of crypto mining firm Bitmain, is not a fan of the company’s decision making of late.
In a letter posted to Weibo, Zhan has laid out all of his thoughts on why the company should not go through with its plan to pursue massive layoffs. Meanwhile, more news has come out regarding Jihan Wu’s current position with the company.
Zhan’s letter to employees notes his “firm opposition” to any layoffs, calling the entire plan outrageous. News leaked in early January that Bitmain would lay off up to 50% of its staff to prepare for the upcoming halvening of BTC block rewards.
In the letter, Zhan notes “Bitmain’s cash flow is healthy, and there are huge amounts of virtual currency assets.” He also added some cheerleading for two divisions of the company:
“The mining machine market is also very competitive, even more fierce than AI. Bitmain has achieved the world’s number one from zero! Our team is not afraid of competition! I believe that in the AI market, our team can also be the first in the world from zero!”
If they go through with the plan as expected, Zhan concluded that it would be a “near-suicide” move, and broke down the math of how all employees could be kept on while still keeping a profit.
This all assumes that Bitmain’s cash flow and profits remain as is, which is already a risky bet considering the company experienced massive layoffs in 2019. Add the fact that the BTC halvening could result in far less miner revenue than anyone would need to stay afloat, and Zhan’s opinion starts to look like back seat driving. But there’s not much he can do until he accomplishes his goal of taking control back from his now nemesis, Jihan Wu.
Speaking of which, Wu himself has quietly made news again. The Block reports Wu has stepped down as the company’s official legal representative, a role he took when ousting Zhan in October. Luyao Liu, Bitmain’s chief financial officer, took over the role on January 2, 2020, leaving Zhan to focus on his position as CEO.
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