Report: Huobi Exchange to Lay Off More Staff
- A Huobi representative dismissed claims that the company plans to lay off 40% of its workforce and faces an uncertain future.
- Crypto exchanges such as Coinbase, Kraken, and Crypto.com have previously trimmed their workforces to survive the bear market.
According to a Reuters report, cryptocurrency exchange Huobi plans to let go of 20% of its workforce. The news comes days after Justin Sun, a well-known crypto investor who joined Huobi as an advisor late last year, rejected claims that the company was about to lay off employees. Sun called reports of a new layoff “untrue.”
A Huobi representative confirmed that the planned layoffs will affect 20% of Huobi workers, as opposed to the rumored 40%. The representative also revealed that the layoff has not yet been implemented.
Recently, rumors concerning alleged financial problems at Huobi have been making the rounds. Independent crypto journalist Colin Wu revealed last week that employee salaries were being paid in stablecoins like USDT and USDC, which raised suspicions about the company’s future.
Dismissing such rumors, a Huobi representative said,
We are aware of the comments regarding the Huobi App and the safety of user assets. Such unfounded and inflammatory rumors not only damage Huobi’s brand image, but ultimately affect the interests of Huobi users.
The Huobi spokesperson also said the company has set up a new organizational structure and modified its business departments following the arrival of the new shareholders. The spokesperson said,
With the current state of the bear market, a very lean team will be maintained going forward. The personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency and return to the top three.
While there are concerns about Huobi’s financial future, layoffs among crypto companies have been a trend since the 2022 bear market. Crypto exchange Coinbase announced last year that it would lay off about 1,100 employees as a safety measure against the bear market. Months later, Kraken announced that it would reduce its 30% bounty. Likewise, Crypto.com laid off 260 employees from its staff.
With the bear market still in full force, crypto experts predict that more companies will have to lay off their employees to survive in the market.