Cryptocurrency exchange KuCoin has denied rumors about laying off 30% of its workforce, amounting to approximately 300 employees.
The company’s spokesperson clarified that there are no plans for such layoffs and any personnel adjustments will be part of the firm’s broader business development strategy.
These adjustments are a normal process in organizational development, according to the spokesperson.
CEO Johnny Lyu echoed this statement in a tweet on July 25, asserting that KuCoin is operating smoothly and any potential staff cuts would be a result of a semi-annual employee performance evaluation.
He emphasized the importance of staying competitive and dynamic in the fast-paced crypto sector.
The rumors about the layoffs were sparked by a post from independent journalist Wu Blockchain, who claimed that KuCoin would cut its workforce due to a strict Know Your Customer policy in the United States, leading to a decline in profits.
However, Wu Blockchain later retracted the claims after KuCoin’s CEO clarified the actual reason for potential staff adjustments.
KuCoin did not specify the percentage of staff that might be affected or which positions would be impacted. Currently, the company employs around 1,000 staff globally, a number that CEO Johnny Lyu stated is continually increasing.
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The crypto industry faced significant challenges in 2022 due to the decline in asset prices. Major players like Binance, Coinbase, and Kraken were forced to reduce their headcounts considerably.
Binance reportedly laid off over 1000 employees since May 31, while Coinbase laid off 18% and then another 20% of its staff in June 2022 and January 2023, respectively.
In November 2022, Kraken released 1,100 employees, accounting for about 30% of its workforce at the time.
However, more recent data from March 2023 indicates that the rate of layoffs in the crypto industry may be decelerating.
As the market stabilizes, companies like KuCoin are focusing on strategic business development to navigate the ever-changing crypto landscape.
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