Huobi's spokesperson claimed that the company's layoff ratio is 20%, "but it is not implemented now."
Huobi, a Seychelles-based cryptocurrency exchange established in 2013, has confirmed its plans to lay off 20% of its employees.
Huobi’s spokesperson shared a detailed statement regarding the matter on January 6th.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
What Are Flash Loans? TOP Ways to Make Passive Income Explained
In the statement, Huobi’s spokesperson noted that its “layoff ratio is about 20%, but it is not implemented now.” Nevertheless, the spokesperson emphasized that the allegations that Huobi is looking to fire around 40% of its workforce are false.
The Chinese reporter Colin Wu was the first to report on possible layoff in Huobi. The man claimed that Huobi is looking to reduce the number of its employees from 1,200 to 600-800 staff members.
Moreover, Huobi’s spokesperson stated that the crypto exchange had restructured its organization. The representative of Huobi revealed that the changes in the company’s structure were implemented due to new shareholders taking over the firm.
With the current state of the bear market, a very lean team will be maintained going forward. The personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency and return to the top three.
The company’s representative also commented on rumors about Huobi’s insolvency issues, claiming that they are untrue. The spokesperson commented on the matter, stating:
We are aware of the comments regarding the Huobi App and the safety of user assets. Such unfounded and inflammatory rumors not only damage Huobi's brand image, but ultimately affect the interests of Huobi users.
Huobi’s new shareholder Justin Sun used Twitter to deny insolvency rumors on January 5th. The man claimed that Huobi’s business development is “good” and the “security of users’ assets will always be fully protected.”
It is worth noting that Justin Sun-related firm, About Capital, purchased the majority of Huobi shares from its founder Leon Li in October 2022. At that time, About Capital claimed that it aimed to make Huobi a first-class trading and investment services provider.
