Mass Layoffs Of The Crypto Industry, Now It's Huobi's Turn To Cut More Than 30 Percent Of Employees

JAKARTA – One of the crypto journalists from China, Colin Wu, revealed that one of the major crypto exchanges will cut more than 30% of its employees. This information was conveyed by Wu last week.

Wu explained that the crypto exchange is Huobi. He mentioned that Huobi "will initiate layoffs, which may exceed 30%." Amid the overall decline in crypto prices in recent months, a number of companies from the crypto industry such as Coinbase, Blockfi, Gemini, Bitso, Buenbit, Rain Financial, Bybit, and 2TM have laid off their employees.

The drop in crypto prices has triggered staff cuts at various crypto exchanges. In addition, the inflation of the US dollar and the economic recession in the country have also triggered massive layoffs not only in crypto companies but in fintech companies in general.

Wu explained the main reason Huobi laid off his staff. He detailed that volatile market conditions and “a sharp drop in revenue after the removal of all Chinese users” were the main reasons for Huobi's decision. Even so, Huobi has yet to make an official announcement.

According to a Coindesk report, a Huobi spokesperson has explained to reporter Oliver Knight of the crypto news platform the company's decision. According to a Huobi spokesman, it is in the process of reviewing company policies.

“Due to the current market environment, Huobi Global is in the process of reviewing its current hiring and workforce policies, with the aim of realigning them with its operational needs. Further to the review, layoffs are a possibility," Huobi said.

In addition, Colin Wu also shared information regarding Huobi founder, Leon Li, who is reportedly planning to sell a number of companies.

“Huobi founder [Leon] Lin wants to sell his stake in Huobi. Li Lin currently holds more than 50% stake," Wu said in a Twitter post on July 1, 2022.

“Huobi's second largest shareholder is Sequoia China. Huobi's revenue plummeted after removing all Chinese users and laying off staff," he added.

The Huobi crypto exchange has seen significant growth in the past year. Huobi is a centralized crypto exchange that offers 577 crypto assets. Crypto trading volume on Huobi has also touched 856 million US dollars in its global trade.