Huobi, a cryptocurrency exchange based in Singapore, revealed it would lay off around 20% of its whole workforce after weeks of rumors.
“The planned layoff ratio is about 20%, but it is not implemented now. With the current state of the bear market, a very lean team will be maintained going forward,” a Huobi spokesperson told The Block, adding: “The personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency and return to the top three.”
The news comes almost a week after journalist Colin Wu revealed on Dec. 30 that there had been layoffs at the cryptocurrency exchange. Wu reportedly claimed that Huobi has decided to require wage payments to be made in stablecoins rather than fiat money, prompting employee objections.
Crypto exchange Huobi says it will cut staff by 20%
All domestic pay will now be paid in USDT, according to a recent internal Huobi email that The Block could translate into English. Employees must “create a Huobi account to receive a salary,” the email adds. It also implies that additional benefits, such as welfare payments, have been terminated along with year-end bonuses. A spokesman for Huobi declined to address such issues.
On October 7, Huobi was purchased by the M&A fund of About Capital Management. A few days later, Huobi named Justin Sun, the founder of Tron, as an advisor. There was widespread speculation that he was the real buyer behind the About Capital transaction, although Sun consistently refuted such allegations.
Sun presented a strategy to make Huobi once again one of the largest exchanges in the world in late November. A key component of this ambition is creating a hub in the Caribbean. “The new shareholders have taken over so far, and in just three months, have slowly reversed the declining trend of the Huobi, established a new organizational structure, as well as adjusted the business departments, and partially optimized for the personnel,” Huobi’s spokesperson said, adding that the exchange is currently adding 390,000 new users monthly.
Rumors that Huobi has shut down internal communication and feedback mechanisms are currently rife on Twitter. The exchange, which is starting a global development strategy, will “fully respect the legitimate demands of local employees, and continue to provide industry-competitive incentives and treatment for outstanding talent,” according to a representative for Huobi.
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