Crypto Downzing Continues as Huobi Plans to Prune Workforce by 20%

The downsizing wave that swept through the cryptocurrency industry in 2022 is still on track as Seychelles-based cryptocurrency exchange, Huobi, has disclosed its plans to prune down its workforce by 20%.

Huobi told Reuters on Friday that it intends to maintain “a very lean team” to cope with the current bear market in the industry. This is even as Justin Sun, Tron’s Founder and a Member of Huobi’s Global Advisory Board, disclosed in an internal memo seen by the outlet that the crypto exchange has about 1,100 employees.

Additionally, Sun noted that the crypto exchange’s plan for some “structural adjustment” has a first-quarter 2023 completion target. The Board Member expects that the company’s reorganization will produce short-term benefits for the exchange.

Genesis and Silvergate Capital Cut Jobs

Meanwhile, Genesis Trading on Thursday announced its second round of job cuts in less than six months. Sources put the figure of affected workers at about 30%. The company attributed the action to efforts to move the business forward. However, the development comes amidst the subsidiary Genesis Global Capital’s trouble with Gemini over $900 million of unpaid debt related to the Gemini Trust Earn programme.

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Similarly, crypto-focused bank, Silvergate Capital Corp, announced a plan to reduce its headcount by 40%. These job cuts come as crypto exchanges search for succour in the face of dwindling investor confidence in crypto.

Crypto Exchanges Cut Jobs in Recent Months

In the past few months, a number of crypto exchanges have pruned down or announced plans to shed their workforces.

In early December, Bybit made its plans public to further trim its workforce, with confirmed sources putting the figure at about 30%. The revelation came five months after Bybit shrank its workforce. A Bybit spokesperson said the aim of the new layoff round is to “remove overlapping functions and build smaller but more agile teams."

A week before Bybit's announcement, Kraken, one of the longest-running cryptocurrency exchanges, decreased its workforce by 30%, firing approximately 1,100 people “in order to adapt to current market conditions.”