With the current status of the bear market, a very lean team will be maintained moving ahead, Huobi said in a statement in response to questions from Reuters. “The planned layoff ratio is about 20%, but it is not implemented now.”
The announcement supported a prior post from Justin Sun, the founder of Tron, in which Sun stated that Huobi's “structural adjustment” has not yet begun and is anticipated to be finished by the first quarter.
In an official message to Huobi personnel, Sun, a Chinese cryptocurrency pioneer who is also a part of the business's worldwide advisory committee, said that despite the deteriorating macro climate, the company has been “a fire in the (crypto) cold.”
In the previous three months, the site has attracted 20,000 new members on average each day, he continued.
As per analytics platform CoinGecko, Huobi was listed as the eighth-largest cryptocurrency exchange in terms of volumes as of late November.
The restructure, according to Sun, will only cause “short-term discomfort” and may ultimately benefit the exchange. It wasn't immediately known how many employees Huobi has at the moment.
Following the failure of FTX and a number of other bankruptcies last year, there are larger concerns regarding the resources and liquidity at several cryptocurrency exchanges and lenders.
While cryptocurrency-focused bank Silvergate Capital Corp (SI.N) reported a steep decline in its fourth-quarter crypto-related deposits, cryptocurrency business Genesis recently announced the reduction of 30% of its personnel in a second round of layoff in much less than six months.
According to Joshua Chu, group chief risk officer for blockchain technology companies XBE, Collectibles, and Marvion, “all these organizations are turning to cost-cutting methods... Instead of navigating the ship through tumultuous times, these CEOs have just cut people's losses.”
“Cutting people will not help these tech companies with solving the inherent problem in that they need to make products with underlying value.”
Leon Li, the creator of Huobi, sold his majority ownership interest in the business to the buyout firm About Capital Management (HK) Co. last year.
The Huobi Token reached its all-time high in late October. According to WikiBit, it currently trades at an average price of $4.70 USD with a $19.80 million 24-hour volume. Friday's price was $4.70.
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