In light of the swirling rumors, leading cryptocurrency exchange KuCoin recently quashed speculations about downsizing 30% of its staff – an equivalent of roughly 300 employees.
KuCoin’s Clarification on Alleged Layoff Plans
A spokesperson from KuCoin dismissed these allegations, emphasizing the company’s lack of such an initiative. “We wish to clarify that no such layoff plans are underway at KuCoin,” shared the representative. Furthermore, it was stressed that prospective personnel changes form part of a grander scheme to foster the company’s growth and business development.
KuCoin CEO, Johnny Lyu, sought to address the circulating rumors via a tweet on July 25, assuring stakeholders that operations continue smoothly at the crypto exchange. He clarified that any potential staff reductions align with the company’s semi-annual performance assessment policy, aimed at retaining a “competitive and dynamic” edge in the rapidly evolving cryptocurrency realm.
The Backstory of the KuCoin Layoff Rumors
The counterclaim by KuCoin came in response to a July 25 report by independent journalist Wu Blockchain. The journalist alleged that KuCoin was gearing up to cut down 30% of its workforce. That would be due to strict Know Your Customer (KYC) regulations in the United States, leading to a dip in the company’s earnings.
However, Wu Blockchain retracted the assertions post-Lyu’s confirmation that the staff cuts were simply part of a standard performance appraisal.
KuCoin refrained from disclosing the exact percentage of the workforce affected and the roles that would bear the most impact. The crypto giant claims a robust workforce of approximately 1,000 employees globally, a figure Lyu assures is rising.
The Industry’s Reaction to Crypto Market Fluctuations
2022 was a challenging year for the crypto asset market, compelling many industry behemoths like Binance, Coinbase, and Kraken to drastically trim their staff.
Binance reportedly laid off over 1,000 employees starting May 31, whereas Coinbase dismissed 18% and a subsequent 20% of its staff in June 2022 and January 2023, respectively. In November, Kraken let go of 1,100 employees, roughly 30% of its workforce then.
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