Crypto exchange Huobi to layoff 20% of its workforce amid bear market
Leading crypto exchange Huobi is looking to layoff around 20% of its workforce. The job cut comes at a time when investors’ interest in digital assets has taken a downturn amidst concerns over reserves and solvency at various crypto exchanges and lenders and the current bear market conditions. Also, Huobi’s layoff is part of its structural adjustment.
While responding to queries from Reuters, Huobi said that the planned layoff ratio is about 20%, but it is not implemented now. With the current state of the bear market, a very lean team will be maintained going forward.
Also, the statement confirmed an earlier message from Tron founder Justin Sun who told Reuters that the “structural adjustment” in Huobi had not started yet but was expected to be completed by the end of the first quarter. Sun revealed that the exchange has approximately 1,100 employees. Sun is a member of Huobi’s global advisory board.
The announcement of the layoff was conveyed by Huobi to its staff in an internal memo.
Currently, crypto investors are not just facing the bear markets phase, however, their trust has been dampened heavily by cryptocurrency exchanges and lenders as concerns about their reserves and solvency escalated after FTX’s downfall and a series of bankruptcies since mid-2022.
Founded in China in 2013, Huobi is among the leading cryptocurrency exchanges with a strong foothold in the Asian market. The exchange has a presence in Hong Kong, South Korea, Japan, and the United States. The exchange provides virtual asset financial services spanning to spot trading, derivatives trading, staking, crypto loans, crypto yield products, and much more.
Huobi founder Leon Li last year offloaded his controlling stake in the company to buyout firm About Capital Management (HK).
Huobi is not the only one to take the route of layoff, in recent times, many other cryptocurrency exchanges have done the same due to the liquidity crunch. The latest would be the crypto exchange Genesis Trading which is speculated to go for bankruptcy too due to its exposure with FTX, has trimmed 30% of its workforce in a second round of layoffs in less than six months.
On CoinMarketCap, the Huobi token traded at $4.64 at the time of writing down by nearly 2% in the last 24 hours. On Thursday, the token had dropped over 10%. From its all-time high of $39.81 which was recorded on May 12, 2021, the token has dipped over 88% as of now.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.