Huobi Plans 20% Layoff as Bear Market Intensifies: Report

Leading cryptocurrency exchange Huobi Global is planning to downsize its workforce by 20%, Reuters reported on Friday, citing statements from Tron’s founder Justin Sun.

Huobi Mulls 20% Layoff

Sun, who became an adviser to Huobi in October last year, claims the “structural adjustment” has not started and is expected to be completed by the first quarter of 2023. He noted that the restructuring is a “short-term” pain that could bring an advantage to the exchange in the long run. 

The Tron creator told employees at Huobi that the company has been like “a fire in the (crypto) winter” despite the “deteriorating macro environment.” Huobi has had an average of 20,000 new daily users over the past three months, according to Sun. 

The total number of employees that would be affected by the cut was not disclosed, but Huobi’s total headcount is estimated at 1,200 people.

The latest decision by Huobi was initially reported by Chinese crypto reporter Colin Wu in December but was denied by Sun during an interview with Hong Kong’s SCMP. At the time, Wu reported that the exchange was preparing to reduce its headcount, cancel year-end bonuses for staff, and cut the salaries of senior employees.

Internal Feud

Wu also reported earlier this month that as part of its structural adjustment, Huobi is forcing its employees to accept salary payments in USDT/USDC instead of fiat currency. The report revealed that if the employees refuse the payment method, they will be dismissed. The decision has sparked protests against Huobi by some employees, Wu said.

According to reports, Huobi has cut off internal staff communication and feedback channels to reduce tension at the firm.

Meanwhile, the recently reported events at the firm have raised concerns among users and also negatively impacted Huobi’s HT token. The token has declined by 10% during the last 24 hours to $4.50. HT is down 30% since last month. On the other hand, the exchange’s 24-hour trading volume is down by more than 20% from $1.5 billion to $1.2 billion at the time of writing.