Per Reuters

Huobi has decided to cut its staff by 20% as it plans to keep a lean team to maintain its operations moving forward. The platform grew over the last three months, adding an average of 20,000 new daily users.

CoinGecko's November numbers showed that Huobi was ranked the eighth-largest crypto exchange in terms of volume. Justin Sun, the founder of Tron, noted earlier that Huobi has not yet started its structural adjustment but plans to complete the process before the start of Q2.

Sun described Huobi's staff performance as a "fire in the (crypto) winter" despite the macro environment slowing down. Sun is a Chinese cryptocurrency entrepreneur who also sits on the advisory board of Huobi global.

The founder of Tron noted that letting go of 20% of its staff would be "short-term pains" as this move will potentially benefit the exchange moving forward. So far, no number has been revealed as to exactly how many people are working at Huobi as of press time.

A previous report by Financial Times in October noted that Huobi had 1,600 employees around the world.

The move by Huobi to trim its workforce comes shortly after Genesis decided to cut another 30% of its workforce. XBE, Coinllectibles, and Marvion group chief risk officer Joshua Chu gave a statement regarding the cost-cutting measures.

Chu: "All these companies are resorting to cost cutting measures ... Instead of plotting the ship through turbulent times, these executives have simply cut people losses,"

In 2022, Leon Li, the founder of Huobi, decided to sell his controlling stake to About Capital Management (HK) Co., a buyout firm. Although originally founded in China, the company had to move out of the country because of Beijing's crackdown on the crypto industry, with only its consulting and research left in China, per CNBC.

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Resources:

Reuters

The Financial Times

CNBC