Huobi Confirms 20% Layoff Citing Restructuring Plans

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With the new administration and leadership of Justin Sun, Seychelles-headquartered cryptocurrency exchange Huobi has decided to reduce its headcount by 20%.

Previously, the Tron founder had earlier denied the rumors of layoffs coupled with talks about payment disputes, and disagreement with employees but has now confirmed the news of the layoffs citing plans to restructure amid its contagion with FTX. 

Notably, it was rumored earlier that a 40% layoff was taking place at Huobi, it however turns out to be a 20% headcount reduction. According to the Chinese crypto entrepreneur, the supposed “structural adjustments” is yet to commence but are scheduled to be completed by the first quarter of the year. 

“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,” Huobi announced “The personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency and return to the top three.”

Additionally, Huobi debunked allegations that the exchange was becoming insolvent. 

“We are aware of the comments regarding the Huobi App and the safety of user assets. Such unfounded and inflammatory rumours not only damage Huobi’s brand image, but ultimately affect the interests of Huobi users,” a company’s spokesperson stated even after publishing a transparency report which showed it has up to $3.5 billion in holdings.

Huobi Survives Crypto Winter in 2022

Huobi, which was recently rebranded, celebrates itself as one of the few crypto exchanges that were able to survive through the crispy crypto winter in 2022. Sun called Huobi “a fire in the (crypto) winter” stating that amid the bearish market, the exchange still got an average of 20,000 new users in the last three months.

CoinGecko, a blockchain analytic firm, ranked the Seychelles-headquartered crypto firm as the eighth largest digital asset trader in terms of trading volume in November 2022. However, the news of its layoff, insolvency, and other troubles has raised concerns in the mind of many of its investors. Huobi investors are now selling and withdrawing their assets in the company and Tron.

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