Cryptocurrency exchange Huobi Global has announced that it will let go of almost 20% of its workforce.
Huobi Global which employed over 1,600 people in October 2022, has claimed that the volatility and unpredictability of the cryptocurrency market have forced it to scale back in order to maintain its ability to operate profitably.
A Huobi representative said that due to the ongoing bear market conditions, the company would continue to operate with a small team. Due to China’s anti-cryptocurrency stance, the company moved to the Seychelles in late 2021, and it will continue with a lean workforce.
Huobi currently has daily trading volumes that exceed $300 million. The news of layoffs might make customers lose faith in the company, which would reduce trade volume. Following the announcement, the price of HT, the exchange’s native cryptocurrency, has decreased by 7%.
Numerous businesses have been impacted by the widespread layoffs that have recently occurred in the cryptocurrency sector. Due to the difficult market conditions, well-known players like Coinbase and Crypto.com have had to reduce their workforces; Coinbase recently announced plans for an additional 1,000 layoffs.
The growth and investment in the cryptocurrency market have slowed, putting pressure on resources and pushing businesses to make difficult choices.
Huobi had previously seen layoffs in the past, but the most recent job losses in the sector show the slowdown’s wider effects. In the end, it’s unclear how recent events will affect Huobi’s destiny.
The cryptocurrency exchange is struggling in the midst of the unstable market, just like other significant firms. Due to the current instability, businesses must make difficult decisions that will have long-term effects.
