Zhan opposes Bitmain's layoffs

After filing legal proceedings in a court in the Cayman Islands against Bitmain's shareholders, Zhan, co-founder of Bitmain, opposes the company's plans to reduce its staff by fifty percent.

Zhan opposes Bitmain's layoffs

Zhan files legal proceedings against Bitmain shareholders

As reported in BitcoNews, Bitmain's co-founder, Micree Zhan Ketuan, alleges that he was removed without his consent to his position as legal representative of the company. The decision was made by Bitmain's cofounder, Jihan Wu, and was announced through an email informing: "Bitmain's cofounder, president, legal representative and chief executive, Jihan Wu, decided to dismiss all the roles of Ketuan Zhan , with immediate effect. "

Due to the unexpected removal of his position, Zhan initiated legal action in a court in the Cayman Islands against Bitmain shareholders to dismiss the decision of the shareholders to convert the votes of Class B shares from ten per share to one per action. Zhan alleges that this decision significantly reduced his influence on the company's decisions.

Zhan against layoffs

On the other hand, Bitmain announced that it planned to reduce the number of employees by fifty percent, as a measure to deal with the new Bitcoin halving that will halve the rewards earned by miners working within the network.

In a post made at Weibo on January 6, 2020, Zhan addressed Bitmain employees stating his firm opposition to the layoffs that Bitmain plans. In the post he wrote: “To all Bitmain employees: I strongly oppose layoffs! We don't need to fire people! We can't play suicide! ”

Zhan argues that the "suicide" of the company to cut its staff will only allow competing companies to take greater share in the market that today dominates Bitmain.