- The crypto exchange of Huobi is reportedly planning layoffs that will exceed 30% or more of its current employees.
- Huobi cites a reduction in revenue due to the ongoing crypto market drawdown and its exit from mainland China as the main reasons behind the move.
The crypto exchange of Huobi Global is reportedly looking to lay off 30% or more of its staff. According to the team at WuBlockchain, Huobi cites a reduction in revenue due to its exit from mainland China as the main reason for the planned move to lower the number of its employees.
EXCLUSIVE: Cryptocurrency exchange Huobi will start layoffs, which may exceed 30%. The main reason is the sharp drop in revenue after the removal of all Chinese users. Previously, Bybit also announced a layoff plan. pic.twitter.com/jbRG2Aew5G
— Wu Blockchain (@WuBlockchain) June 28, 2022
Huobi Is Realigning Hiring and Current Manpower to its Operational Needs.
According to another report by CoinDesk, Huobi Global is expected to cut at least 300 of its 0ver 1,000 employees. A company spokesperson further reiterated the ongoing crypto market drawdown as the main reason behind the decision. They explained:
Due to the current market environment, Huobi Global is in the process of reviewing both its hiring policies and its current manpower, with the goal of re-aligning them to its operational needs. Further to such review, layoffs are a possibility.
Crypto Winter Continues to Batter Crypto Exchanges.
Huobi’s announcement notifying the crypto and investor communities of possible staff reduction follows a growing trend of crypto exchanges doing the same due to the ongoing crypto winter.
At the time of writing, the crypto exchanges of Coinbase, Gemini, Bybit, and the Australian exchange of Banxa, have all announced cost-cutting plans targeting a reduction of employees and a revision of its hiring processes.
However, other exchanges such as Binance, Kraken, and OKX, have broken the trend and made public plans to increase their workforce amidst the crypto drawdown. The crypto project of Tron, through its founder, Justin Sun, has also announced similar plans to hire new employees despite the adverse price action of Bitcoin and other digital assets in the crypto markets.
No Bottom in Sight for Bitcoin.
Concerning a potential bottom for Bitcoin, analysts and traders are cautious regarding an early declaration of the recent low of $17,600 as a possible floor. This is based on the global macro-economic factors affecting the traditional markets. They include the war in Ukraine, growing inflation, and a continuous stock market bull market since the 2008 housing market crash, which was due for a correction.