KuCoin denies mass layoffs, says cuts are part of normal operations

Cryptocurrency exchange KuCoin has shut down rumors suggesting it was preparing to lay off 30% of its workforce — a figure that amounts to approximately 300 staff — in the coming weeks.

“We want to clarify that KuCoin has not initiated any alleged layoff plans,” a KuCoin spokesperson told Cointelegraph, adding that that any potential cuts are part of a broader plan to expand on the firm’s business development:

Addressing the layoff rumors, Kucoin CEO Johnny Lyu in a July 25 tweet that the crypto exchange is still operating smoothly. Lyu explained that any potential staff cuts would be part of a semi-annual employee performance evaluation, which he said is part of remaining “competitive and dynamic” in the fast-paced crypto sector.

The clarification from KuCoin appeared to be in response to a July 25 by independent journalist Wu Blockchain that claimed that KuCoin would soon lay off 30% of its workforce due to a strict Know Your Customer policy in the United States, which had led to a decline in the exchange's profits.

However, Wu Blockchain later backtracked on the claims after Lyu confirmed the staff cuts were part of a normal performance appraisal.

KuCoin didn’t clarify the percentage of staff that would be cut and which positions would be most impacted.

According to KuCoin, the company currently employs around 1,000 staff worldwide, a figure Lyu claims is steadily increasing.

Related:

The decline in crypto asse t prices throughout 2022 forced many of the industry’s heavyweights in and to significantly reduce headcounts significantly.

Binance has reportedly since May 31 this year, while Coinbase laid off 18% and of its staff in June 2022 and in January 20, respectively. In November, , which amounted to roughly 30% of its workforce at the time.

However, recent data from March 2023, suggests the rate of layoffs throughout the crypto industry

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