Kucoin Denies Claims of Massive LayOffs
- KuCoin denied planning a massive layoff of its workforce.
- A Twitter news source claimed KuCoin has been heavily affected by its mandatory KYC and has to reduce its workforce to stabilize.
Seychelles-based cryptocurrency exchange KuCoin revealed on Tuesday that it might reduce its workforce as an act of housekeeping. It, however, denied claims that it planned to lay off a large part of its workforce.
Reports emerged on Tuesday that KuCoin plans to fire up to 30% of its staff as it struggles with a drop in profits following the New York State Attorney General’s lawsuit against the exchange in March over claims that it broke securities laws by offering tokens, including ether. Twitter news account Wu Blockchain claimed that KuCoin’s recent introduction of mandatory identity checks for its users affected its revenues.
However, a KuCoin official denied such claims, noting that the exchange has “not initiated any alleged layoff plans.” A KuCoin spokesperson, however, explained that “as part of the company’s business development and semi-annual employee performance review, there might be some personnel adjustments as needed, which is a normal process in organizational development.”
Providing clarity to the situation, KuCoin’s CEO Johnny Lyu explained that “to stay on top, we regularly evaluate our organizational structure based on employee performance and company development,” adding that “it is not layoffs, and it is all about making the organization more dynamic and competitive.”
To show proof of KuCoin’s growth, Lyu cited a recent report from KuCoin that said the exchange had hired 300 new employees over the past few months and was making some changes to its operations.
Lyu added that “KuCoin is operating smoothly. We’ll keep investing in our core businesses and providing our users with the top-notch experience we promised.” KuCoin isn’t the only crypto exchange contemplating layoffs as a performance review.
Binance recently explained that the ongoing layoffs were a part of its review of employee performance ahead of the next market cycle. Although Binance has faced multiple suits from regulators, the exchange’s CEO, Changpeng Zhao, maintained that the exchange was financially secure and did not plan to lay off staff for economic reasons.
However, reports recently emerged that Binance had informed staff that it would withdraw some employee benefits due to a decline in profit. Binance said it will no longer reimburse staff for their mobile phones, fitness, and remote work arrangements. A message from the exchange allegedly claimed that:
Considering the current market environment and regulatory climate that have unfortunately led to a decline in profit, we have to be more prudent with our spending.
Binance CEO Changpeng Zhao told the company’s workers that the exchange was still profitable. But he failed to disclose when some of the withdrawn perks would be reinstated.
Binance has already laid off over 1,000 employees, which is a third of its workforce. Some of the company’s top executives have left their roles due to concerns about Changpeng Zhao’s handling of Binance’s legal disputes with US regulators. While Zhao has maintained that all is well, many believe that only time will reveal Binance’s true state.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
