Cryptocurrency exchange KuCoin has refuted reports suggesting a massive staff layoff. However, it has acknowledged its intentions to conduct regular performance evaluations, which could decrease staff numbers.
The news of the alleged layoff emerged on Tuesday when reporter Colin Wu tweeted that KuCoin planned to dismiss 30% of its approximately 1000 employees. Citing three anonymous sources, Wu attributed the potential layoff to a decline in exchange profits due to implementing a strict Know Your Customer (KYC) policy and an ongoing lawsuit in the United States.
In March, the New York Attorney General charged KuCoin to court for failing to register with the state before providing cryptocurrency trading services. Additionally, on July 15, KuCoin introduced a mandatory KYC procedure, reportedly negatively impacting the exchange’s revenue.
Following these reports, KuCoin’s CEO, Johnny Lyu, took to Twitter to clarify the situation. Lyu asserted that the exchange was operating smoothly, pointing to a significant increase in users and new token listings according to the H1 2023 performance report.
Regarding the layoff rumors, Lyu denied the claim and stated that the company regularly evaluates staff performance and growth. He emphasized that the evaluation process is not a layoff but a measure to ensure the organization remains dynamic and competitive in the fast-changing crypto world.
Furthermore, despite the rumors, Lyu confirmed the company’s commitment to developing its core businesses.
Layoffs have been a common occurrence in the crypto space in 2023. Earlier in the year, Crypto.com and Huobi each laid off 20% of their staff, resulting in the dismissal of around 900 and 300 workers, respectively. Chainalysis, a crypto data analytics firm, also laid off 48 of its 900 employees, citing a reorganization plan.
More recently, Binance, the world’s largest crypto exchange, laid off 1,000 employees amid increased regulatory scrutiny. As reported by WSJ, this move has been speculated to be part of Binance’s strategy to reduce its workforce by one-third.
As the crypto industry evolves, companies adapt their structures and operations to remain competitive and compliant in a rapidly changing environment.