Crypto exchange Huobi says layoffs are a 'possibility'

Crypto exchange Huobi has said layoffs are a “possibility” after a tweet from Chinese outlet Wu Blockchain claimed the company could lay off as much as 30% of its workforce.

The move was said to be due to a sharp drop in revenue following the removal of Chinese users, amid a wider crypto ban in the country.

A spokesperson from Huobi told The Block it had dedicated significant resources to its hiring efforts around the world as it pushed for international expansion, but was reconsidering given the current market environment.

“Huobi Global is in the process of reviewing both its hiring policies and its current manpower, with the goal of realigning them to its operational needs. Further to such a review, lay-offs are a possibility,” the spokesperson said.

Founded in China in 2013, but now based in the Seychelles, Huobi claims over 10 million users globally. On LinkedIn, it lists its company size as between 1,001 and 5,000 employees.

Despite its push for expansion it has also faced issues in some markets, most notably on its former home turf due to the Chinese government’s repeated crackdowns on crypto. It will also shut down permanently in Thailand on July 1 after local authorities revoked its license to operate there.

Should it announce layoffs, Huobi will not be the only exchange to do so in recent weeks. Gemini slashed around 10% of its workforce at the beginning of this month. Coinbase also laid off 18% of its staff, or around 1,000 people, after admitting it had "over-hired." Alongside these, Bybit has confirmed plans to lay off staff but has not said how many.