KuCoin Dismisses Layoff Rumors, Emphasizes Ongoing Business Expansion
KuCoin, the cryptocurrency exchange, has firmly denied speculations regarding an imminent layoff of approximately 300 employees, amounting to 30% of its workforce. A spokesperson from KuCoin clarified that the company has not initiated any layoff plans and asserted that any potential personnel adjustments are a routine part of the firm’s business development strategy.
The spokesperson explained that such adjustments are conducted during the semi-annual employee performance review process, which is a common practice in organizational development. KuCoin’s CEO, Johnny Lyu, reaffirmed the exchange’s smooth operation and addressed the possibility of staff reductions, stating that these evaluations are essential to maintain competitiveness and adaptability in the rapidly evolving crypto industry.
KuCoin Responds to Layoff Rumors Following Independent Journalist’s Misinterpretation
KuCoin issued a clarification in response to a post by independent journalist Wu Blockchain on July 25. The post had claimed that the exchange was planning to lay off 30% of its workforce due to the strict Know Your Customer (KYC) policy in the United States, which reportedly impacted the exchange’s profits negatively.
However, after KuCoin’s CEO, Johnny Lyu, confirmed that the staff cuts were, in fact, a routine part of the company’s standard performance appraisal process, Wu Blockchain retracted the initial claims. The misunderstanding was subsequently resolved, and the reason behind the personnel adjustments was clarified.
KuCoin Remains Vague on Staff Cuts Amidst Industry Layoff Trends
KuCoin refrained from specifying the exact percentage of staff that would be affected by the planned cuts or the specific positions most impacted. The company currently employs approximately 1,000 staff members worldwide, a number that is steadily increasing, according to CEO Johnny Lyu.
In 2022, the crypto industry experienced a significant decline in asset prices, leading prominent exchanges such as Binance, Coinbase, and Kraken to undertake substantial staff reductions. Binance reportedly laid off over 1,000 employees since May 31, while Coinbase reduced its workforce by 18% in June 2022 and then an additional 20% in January 2023. In November of an earlier year, Kraken released 1,100 employees, which constituted roughly 30% of its workforce at that time.
However, recent data from March 2023 suggests that the rate of layoffs within the crypto industry may be showing signs of deceleration.