Cryptocurrency exchange Huobi said layoffs are a “possibility” after a tweet from Chinese channel Wu Blockchain claimed the company could lay off up to 30% of its workforce. The change is said to be due to a sharp drop in revenue following the removal of Chinese users, amid a broader ban on cryptocurrencies in the country.
“Huobi Global is in the process of reviewing both its hiring policies and its current workforce to realign them to its operational needs. In addition to such a review, layoffs are a possibility,” the spokesperson said.
Founded in China in 2013, but now headquartered in Seychelles, Huobi has over 10 million users worldwide. On LinkedIn, it lists company size between 1.001 and 5.000 employees. Despite its expansion effort, it has also faced problems in some markets, particularly in its former territory due to the Chinese government’s repeated crackdowns on cryptocurrencies. It will also be permanently closed in Thailand on July 1, after local authorities revoked its license to operate there.
If it does announce layoffs, Huobi will not be the only exchange to do so in recent weeks. Gemini cut about 10% of its workforce earlier this month. Coinbase also laid off 18% of its staff, or around 1.000 people, after admitting it had “overhired”. In addition, Bybit confirmed plans to lay off employees, but did not say how many.
