KuCoin Denies Layoff Report, Says Operations Are Normal
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KuCoin refuted a report that it plans to lay off 30% of its employees and said personnel adjustments are part of normal operations.
The Seychelles-based crypto exchange’s CEO, Johnny Lyu, tweeted that ”it is not layoffs,” adding that the company regularly evaluates its organizational structure based on employee performance and the company’s development.
A KuCoin spokesperson told Coin Telegraph that the company ”has not initiated any alleged layoff plans” but added that as part of semi-annual performance reviews, ”there might be some personnel adjustments as needed, which is a normal process in organizational development.”
Media platform Wu Blockchain had earlier tweeted that KuCoin would lay off 30% of its almost 1,000 staff and that more than three internal employees confirmed the information. The reason for the layoffs was that profits had declined after implementing a strict ”Know Your Customer policy” following legal action against it in the US.
KuCoin Operating Smoothly
Lyu said the company is operating smoothly and has “strong growth in users and new listings” in the first half and that its “talented team is expanding steadily.” He said that developments were less about letting employees go and more about keeping the exchange competitive.
“The crypto world changes fast,” he said. “To stay on top, we regularly evaluate our org structure based on employee performance and company development. So it is not layoffs, and it is all about making the organization more dynamic and competitive.”
3/ The crypto world changes fast. To stay on top, we regularly evaluate our org structure based on employee performance and company development. So it is not layoffs, and it is all about making the organization more dynamic and competitive.
— Johnny_KuCoin (@lyu_johnny) July 25, 2023
Industry-Wide Staff Reductions
While KuCoin says it is not reducing its staff, there have been many layoffs as the crypto winter undercuts profits and inflation pushes up costs.
Kraken began laying off 30% of its staff in November, or about 100 employees. Coinbase laid off 18% of its workers in June last year.
Coinbase let go of an additional 20% of its staff in January, or about 950 people. In May, Binance released over 1,000 employees in a bid to reduce expenses and retain profitability.
The broader tech industry also laid off tens of thousands of workers. But some companies are recovering and the layoffs have eased over recent months.
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