Cryptocurrency exchange Huobi Global could cut over 30% of its workforce after the removal of Chinese users created a sharp drop in revenue, according to China-based crypto journalist Colin Wu.
- "Due to the current market environment, Huobi Global is in the process of reviewing both its hiring policies and its current manpower, with the goal of re-aligning them to its operational needs," a company spokesperson told CoinDesk. "Further to such review, layoffs are a possibility."
- The Seychelles-based Huobi Global is one of the most prominent crypto exchanges with daily trade volume regularly exceeding $1.2 billion, according to CoinGecko.
- Last week, rival exchange Bybit announced a similar cost-cutting measure and laid off 30% of its staff in light of the recent market downturn.
- This followed Coinbase's (COIN) decision to reduce its headcount by over 1,100 employees. BlockFi and Crypto.com also laid off a total of 400 employees.
- The cryptocurrency market has slumped from an aggregated $2.9 trillion market cap to $938 billion over the past seven months, with bitcoin (BTC) now trading at $20,800 after hitting an all-time high of $68,980 in November.
- Huobi's native exchange token (HT) was down 1.16% over the past 24-hours at $5.30.
- Huobi did not respond to CoinDesk's request for comment at press time.
Read more: Coinbase Lays Off Around 1,100 Employees
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.