Amid the rapid increase in FUD in the industry, cryptocurrency exchange platform Huobi has disclosed its plans to reduce its workforce by 20%. This follows the company’s rumor of being insolvent.Â
According to Reuters, citing a statement from Huobi, “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.”
Prior to the disclosure, Tron founder Justin Sun already hinted and said that the “structural adjustment” in Huobi had not started yet but is presumed to be completed by the end of the first quarter. Sun added that the company currently has 1,100 employees now.
Exodus Continuation In The Crypto Industry
Notably the layoffs amid an increasing exodus between companies in the industry. Last month, Bybit announced it was minimizing its staff as a direct consequence of the extended bear market.
Ben Zhou (the co-founder and CEO of the Singaporean crypto exchange) declared this in a Twitter post, elaborating that the respective decision was very difficult to take.
Not only Bybit, Swyftx, an Australian-based crypto exchange, also announced last month it would lay off 90 of its staff members – an amount which is about 40% of the exchange’s workforce.
According to Swyftx co-Founder and CEO Alex Harper, the reason behind the company’s staff reduction is to prepare in advance for a worst-case scenario of further significant drops in global trade volumes. Adding that though Swyftx has no direct exposure with FTX, that doesn’t make the company immune to the widespread fallout ongoing in the crypto market.
