Cryptocurrency exchange KuCoin has firmly refuted circulating rumors suggesting imminent layoffs of about 30% of its workforce, equivalent to roughly 300 employees.
KuCoin spoke to Cointelegraph to dispel the allegations, stating, “KuCoin has not initiated any alleged layoff plans.” The spokesperson added that any potential staffing changes would be part of the company’s broader business development strategy and semi-annual employee performance reviews, both standard elements of organizational development.
KuCoin CEO Johnny Lyu addressed the issue directly in a July 25 tweet, assuring that the crypto exchange continues to operate smoothly. Lyu indicated that any potential staff reductions would arise from routine semi-annual employee evaluations, a necessary step to stay “competitive and dynamic” in the fast-evolving crypto sector.
The rebuttal came after an independent journalist, Wu Blockchain, posted on July 25 alleging that KuCoin planned to lay off a substantial portion of its workforce due to strict Know Your Customer regulations in the United States, which were purportedly affecting the exchange’s profits. Wu Blockchain later retracted the claim following Lyu’s clarification that any staff reductions would be a routine part of performance appraisals. KuCoin has not disclosed the percentage of staff potentially affected or the roles most likely to be impacted.
Presently, KuCoin has a global workforce of approximately 1,000 employees, a number that Lyu maintains is on the rise. The crypto industry has seen significant workforce reductions throughout 2022 due to declining crypto asset prices. For instance, Binance reportedly let go of more than 1,000 employees since May 31 of the same year, and Coinbase reduced its staff by 18% in June 2022, followed by an additional 20% in January 2023. In November, Kraken released 1,100 employees, roughly 30% of its workforce at the time.
However, recent data from March 2023 suggests that the rate of layoffs in the crypto industry may be slowing down.
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