Canadian based Bitcoin (BTC) mining company Hut 8 has laid off many of its staff following the 2018 bear market and increased electricity costs.
According to the report by Canadian Broadcasting Corporation (CBC) on April 4, this would be the second time the firm will be laying-off its staff within the year.
The facility which is located in Drumheller and Medicine Hat, in Alberta, Canada, is a joint venture between Hut 8 and Bitfury, another crypto mining hardware firm, located in Europe.
A former employee of the firm, while confirming the news to CBC, said only 25% of staff were asked to leave globally, but surprinsgly, much more than that percentage has been laid-off by the company’s in branch in Drumheller, Albetta.
Hut 8 which currently runs 85 data centers in the region, has reportedly mined 7,300 bitcoin (BTC) since its inception in 2017.
The layoffs reportedly affected more than half of the data center operations crews, the staff further confirmed.
“POWER PRICES WERE GOING UP, AND BITCOIN WAS GOING DOWN. IN DRUMHELLER, WE WERE EXPECTING SOME FORM OF LAYOFF BUT NOT IN THE MASS AMOUNT THAT WE HAD. AT THE TIME, WE WERE JUST STARTING TO BE UP ONLINE, BE COMPLETELY STREAMLINED. THE PLAN WAS MAYBE LAYING A COUPLE OF PEOPLE OFF PER SHIFT BUT IT ENDED UP THAT PROBABLY HALF OF THE DATA CENTER OPS CREWS WERE LET GO,” HE SAID.
A spokesman at Bitfury, while commenting on the alleged sacking of staff at the facilities, said it is part of a restructuring process at the firm, but refused to comment when asked how many staff were laid-off and if the exercise will contunue in future.
“AS BITFURY GROWS, WE ARE CONSTANTLY EVALUATING WAYS TO BETTER EMPOWER OUR COMPANY TO PERFORM EFFICIENTLY — IN 2019 AND BEYOND. AS PART OF THOSE EFFORTS, WE ARE STREAMLINING OUR OPERATIONS IN ORDER TO HELP US ADVANCE STRATEGIC PLANS TO DEVELOP INNOVATIVE SOFTWARE AND HARDWARE SOLUTIONS AND FOCUS ON OTHER EMERGING TECHNOLOGIES. THIS WEEK’S ACTIONS REFLECT THOSE EFFORTS. THIS DECISION WILL ENABLE US TO LEAD THE COMPANY INTO OUR NEXT CHAPTER OF GROWTH. WE SINCERELY APPRECIATE EVERYTHING OUR TEAM MEMBERS HAVE HELPED US ACCOMPLISH,” he said.
Meanwhile, Hut 8 while giving its revenue report in the Q3 of 2018, stated that its revenue was as high as $13.5 million, and $27.7 million for the nine months ending on Sep. 30, 2018.
It further added that it experienced a net operating loss of $8.3 million.