Last Updated on January 6, 2023 by Bitfinsider

The Huobi cryptocurrency exchange has announced its intention to terminate the jobs of twenty percent of its staff as part of the continuous restructuring that has taken place since Justin Sun’s purchase of the company.

In a statement on January 6, a spokeswoman for Huobi stated that the company’s anticipated layoff ratio is approximately 20%, but that it is not yet being executed. It was highlighted by the spokesperson that the reports that Huobi had fired up to forty percent of its workforce are just rumors.

According to the spokesperson for the company, Huobi has formed a new organizational structure following the takeover by the new shareholders. In addition, the business departments within the company have been reorganized.

Because of the way the bear market is now functioning, we will continue to operate with a very small crew. According to Huobi, the purpose of the staff optimization is to “implement the brand strategy, optimize the structure, improve efficiency, and return to the top three.”

In the statement, Huobi also emphasized that recent rumors in the media about the cryptocurrency exchange supposedly going bankrupt are unfounded, and that Huobi is not insolvent. The following is what the representative of the company said: “We are aware of the comments regarding the Huobi App and the safety of user assets. Such unfounded and inflammatory rumors not only damage Huobi’s brand image, but ultimately affect the interests of Huobi users.”

The revelation comes not long after Sun publicly addressed rumors of Huobi’s impending bankruptcy, stating that the business state of the exchange was OK and that user assets were properly safeguarded. The news comes shortly after Sun made these statements. In addition to this, he assured everyone that Huobi would “completely respect the legal expectations of local employees.”

In October 2022, Leon Li, the creator of Huobi and the primary shareholder in the cryptocurrency exchange, sold his entire ownership in the business to About Capital, which is connected to Sun. As a result of the departure of several senior executives shortly after Sun assumed control of the company, it would appear that Huobi thereafter began its reform efforts.

A former employee of Huobi has revealed that they left the company a couple of months ago as part of a larger transition during the time that rumors were circulating that Sun was going to acquire Huobi.

The former employee, who requested their identity not be revealed, stated, “From what I know, there was a shakeup in management beforehand.” According to the source, Lily Zheng, chief financial officer of the Huobi Group, also resigned from her position with the company a couple of months ago.