Crypto exchange Huobi to layoff 20% of its workforce amid bear market

livemint.com:

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