Huobi confirms 20% layoffs, denies insolvency rumors

Huobi cryptocurrency exchange has confirmed plans to lay off 20% of its employees as part of the ongoing restructuring following Justin Sun’s acquisition of the firm.

“The planned layoff ratio is about 20%, but it is not implemented now,” a spokesperson for Huobi said in a statement to Cointelegraph on Jan. 6. The representative emphasized that the allegations on Huobi firing as many as 40% employees is a rumor.

Huobi has established a new organizational structure after the new shareholders have taken over, the spokesperson said, adding that the firm has adjusted the business departments.

“With the current state of the bear market, a very lean team will be maintained going forward. The personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency and return to the top three,” Huobi said.

In the statement, Huobi also stressed that recent media allegations on the cryptocurrency exchange’s purported insolvency are untrue. The company’s representative stated:

“We are aware of the comments regarding the Huobi App and the safety of user assets. Such unfounded and inflammatory rumors not only damage Huobi’s brand image, but ultimately affect the interests of Huobi users.”

The news comes shortly after Sun publicly addressed rumors of Huobi’s insolvency, saying that the business state of the exchange was fine and user assets were fully protected. He also promised that Huobi will “fully respect the legal demands of local employees.”

As previously reported, Huobi founder and majority shareholder Leon Li sold his entire stake in the crypto exchange to Sun-linked About Capital in October 2022. Apparently, Huobi subsequently launched its reorganization efforts as some key executives left the company soon after Sun took over the firm.

Related: Silvergate sold assets at loss and cut staff to cover $8.1B in withdrawals: Report

A former Huobi employee told Cointelegraph that he left the firm a couple of months ago as part of a broader transition when it was rumored that Sun was acquiring Huobi.

“From what I know, there was a management shakeup first,” the former employee noted, asking to remain anonymous. According to the source, Huobi Group chief financial officer Lily Zheng left the company a couple of months ago as well.

Huobi did not immediately respond to follow-up questions from Cointelegraph.

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