Huobi, a cryptocurrency exchange, has announced plans to lay off approximately 20% of its employees due to the current bear market and a decrease in investor interest in digital assets. The company stated that it will maintain a “very lean team” moving forward. The layoff process has not yet begun, but is expected to be completed by the end of Q1. This news follows similar cost-cutting measures taken by other companies in the industry.
The exchange has seen an average of 20,000 new daily users over the past three months, but has also experienced a significant increase in net outflows over the past 24 hours, according to blockchain data firm Nansen. The company’s founder, Justin Sun, acknowledged the restructuring as “short-term pain” that could eventually bring advantages to Huobi.
This news follows similar cost-cutting measures taken by other companies in the industry, including Genesis, which cut 30% of its workforce in a second round of layoffs, and Silvergate Capital, which saw a sharp drop in Q4 crypto-related deposits. Joshua Chu, Group Chief Risk Officer at blockchain technology firms XBE, Coinllectibles, and Marvion, commented on the trend, saying, “Cutting people will not help these tech companies with solving the inherent problem in that they need to make products with underlying value.
