Colin Wu: Huobi to Layoff 30% of Workforce Amid Worsening Crypto Winter and Conditions

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As the crypto sell-off worsened, popular cryptocurrency and blockchain journalist Colin Wu recently revealed that Huobi, one of the world’s largest cryptocurrency exchanges, “will start layoffs, which may exceed 30%.”

Layoffs of such magnitude have become common in the crypto industry of late, with crypto companies like Blockfi, Coinbase, Gemini, Bitso, Buenbit, Rain Financial, Bybit, and 2TM having to terminate several employees. The raging crypto winter and volatile market conditions are the main reasons companies have been laying off their workforce to remain afloat.

Wu explained that “the main reason” behind Huobi’s recent decision was “the sharp drop in revenue after the removal of all Chinese users.” However, Huobi has yet to release an official statement or announcement confirming the move. A company spokesperson told Coindesk that the firm was “in the process of reviewing” its policies. The spokesperson explained:

“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. Further to such review, layoffs are a possibility.”

Colin Wu Claims Huobi Co-Founder Plans to Sell Part of the Company

On Friday, Wu released another insider scoop claiming that Huobi’s co-founder Leon Li plans on selling off a part of the company. Again, the company has not released any statement confirming Wu’s claims as of this time.

Wu revealed via his Twitter handle: “Huobi founder [Leon] Lin is looking to sell his stake in Huobi. Li Lin currently holds more than 50% of the shares.” He added: “The second-largest shareholder of Huobi is Sequoia China. Huobi’s revenue plummeted after it wiped out all Chinese users and is laying off staff.”

Huobi has recorded significant growth over the past 12 months and currently ranks the fifth largest centralized trading platform by trade volume, according to data from CoinGecko. The company is also the third-largest centralized exchange regarding assets under management (AUM), boasting $7.86 billion at press time.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.