Bitmain's optimization begins to reveal three reasons why Zhan Ketuan opposes layoffs

Wu Blockchain learned that Bitmain’s staff optimization started on the morning of January 6, with compensation packages of n+1 and options. On the same day, former chairman Zhan Ketuan issued a statement opposing layoffs. Headhunters have also received the news and started to negotiate positions with Bitmain’s departing employees.

Because a considerable number of options were provided to mature in advance, some employees signed the resignation agreement normally. However, some employees were dissatisfied with the cash compensation of n+1.

According to insiders, the proportion of staff optimization this time is about 1/3, mainly due to the following reasons:

First: The company's top management is uncertain about the upcoming Bitcoin halving. The halving is only four months away, but the price of the coin is still hovering around 7,000. Wu Jihan has warned on many occasions that Bitcoin halving does not necessarily lead to a rise in the price of the coin. Mining machine manufacturers as a whole should remain cautious before there is a clear signal of an increase.

Second: In 2019, competitor Shenma significantly divided up the mining machine market, and Shenma had only about 80 employees for a long time. Canaan, which successfully went public, has only more than 100 R&D personnel, half of whom are in AI R&D. With serious staff redundancy, Bitmain has not established an absolute advantage in products and markets after S9.

Third: The AI ​​industry as a whole is burning money, and independent profitability is nowhere in sight. Bitmain is not the only company to lay off employees in its AI business. AI algorithm company Megvii and AI chip company Horizon Robotics have both laid off employees, and both have huge financing support. Bitmain's AI chip business financing was once rejected by Zhan Ketuan, and currently relying solely on mining machine support is not feasible in the context of halving.

Attached is Zhan Ketuan’s open letter