By Sunday, Bitmain workers were yet to receive their salaries for last month as well as their year-end bonuses for 2022. The suspension has affected all performance wages as well as half of the basic wages, according to the Leifeng tech news portal.
On Oct. 8, 2023, Odaily Planet Daily insiders reported that Bitmain fulfilled commitments by disbursing some of the pending September wages. The regional report notes the firm promises disbursement post the October 7 holiday based on prevailing circumstances.
In the first quarter of this year, Bitmain implemented a new salary structure. The original fixed salaries were split into two parts — a basic salary and a performance salary, with the latter also linked to employees’ ranks in the company.
Bitmain once held over 70% of the market for application-specific integrated circuit (ASIC) mining units but the business was affected by a conflict between its co-founders Jihan Wu and Micree Zhan that also included clashing over a reported “personnel optimization plan.”
The mining rig manufacturer has been trying to regain some of the lost ground. It recently launched a new addition to its Antminer line of products, the high-efficiency S21 series. In August, the company also announced a $54 million investment in hosting provider Core Scientific.
Pressed by the bear market and increasing regulatory challenges, a number of crypto firms have sought to cut expenses, including labor costs. Layoffs have been reported at major players in the industry such as the world’s largest crypto exchange, Binance, for example.
In April of this year, Bitmain was reportedly fined by Chinese authorities for allegedly failing to withhold and pay individual income tax on benefits provided to its employees such as travel subsidies. The news came amid reports of stepped up tax inspections in the sector.
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