Crypto Downzing Continues as Huobi Plans to Prune Workforce by 20%

Crypto Exchanges Reducing Their Staff in Reaction to the Bear Market
The cryptocurrency business experienced a shrinking tsunami in 2022, and Huobi, a Seychelles-based exchange, recently revealed that it intended to reduce its personnel by 20%. Huobi told Reuters on Friday that in order to deal with the industry’s present bear market, it plans to keep “a very lean team.” In an internal memo obtained by the site, Justin Sun, the founder of Tron and a member of Huobi’s global advisory board, revealed that the cryptocurrency exchange employs over 1,100 people. Sun added that the cryptocurrency exchange intends to complete some “structural adjustment” by the first quarter of 2023. The board member anticipates that the exchange will gain immediate advantages from the company’s restructuring.

In a similar vein, Silvergate Capital Corp., a bank with a concentration on cryptocurrencies, revealed plans to cut 40% of its staff. These layoffs are a result of cryptocurrency exchanges looking for support as investor trust in the industry declines.

Numerous cryptocurrency exchanges have also cut staff or made plans to do so in recent months. Bybit announced plans to further reduce its employment in early December; according to confirmed sources, this reduction would amount to approximately 30%. Five months after Bybit reduced its employment, the information was made public. “Remove overlapping roles and build smaller but more agile teams” is the stated objective of the latest wave of layoffs, according to a Bybit representative.

One of the oldest cryptocurrency exchanges, Kraken, cut 30% of its staff a week prior to Bybit’s statement, letting go of some 1,100 employees “to adapt to current market conditions.”

Restructuring Cryptocurrency Exchanges
The massive cryptocurrency exchange Huobi has lately made some major cuts, the most notable of which being the closure of its Genesis Trading division. The impacted employees will be moved to other business areas by the company. There are other exchanges undergoing recent structural modifications besides Huobi. Silvergate Capital Corp, Kraken, and Bybit have all recently undergone restructuring.