Huobi confirms 20% layoffs, denies insolvency rumors

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Key Huobi execs, including Huobi Group CFO Lily Zheng allegedly near the institution a fewer months agone pursuing the caller shareholders’ takeover.

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Huobi confirms 20% layoffs, denies insolvency rumors

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Huobi cryptocurrency speech has confirmed plans to laic disconnected 20% of its employees arsenic portion of the ongoing restructuring pursuing Justin Sun’s acquisition of the firm.

“The planned layoff ratio is astir 20%, but it is not implemented now,” a spokesperson for Huobi said successful a connection to Cointelegraph connected Jan. 6. The typical emphasized that the allegations connected Huobi firing arsenic galore arsenic 40% employees is simply a rumor.

Huobi has established a caller organizational operation aft the caller shareholders person taken over, the spokesperson said, adding that the steadfast has adjusted the concern departments.

“With the existent authorities of the carnivore market, a precise thin squad volition beryllium maintained going forward. The unit optimization aims to instrumentality the marque strategy, optimize the structure, amended ratio and instrumentality to the apical three,” Huobi said.

In the statement, Huobi besides stressed that caller media allegations connected the cryptocurrency exchange’s purported insolvency are untrue. The company’s typical stated:

“We are alert of the comments regarding the Huobi App and the information of idiosyncratic assets. Such unfounded and inflammatory rumors not lone harm Huobi's marque image, but yet impact the interests of Huobi users.”

The quality comes soon aft Sun publically addressed rumors of Huobi’s insolvency, saying that the concern authorities of the speech was good and idiosyncratic assets were afloat protected. He besides promised that Huobi volition “fully respect the ineligible demands of section employees.”

As antecedently reported, Huobi laminitis and bulk shareholder Leon Li sold his full involvement successful the crypto speech to Sun-linked About Capital successful October 2022. Apparently, Huobi subsequently launched its reorganization efforts arsenic immoderate cardinal executives near the institution soon aft Sun took implicit the firm.

Related: Silvergate sold assets astatine nonaccomplishment and chopped unit to screen $8.1B successful withdrawals: Report

A erstwhile Huobi worker told Cointelegraph that helium near the steadfast a mates of months agone arsenic portion of a broader modulation erstwhile it was rumored that Sun was acquiring Huobi.

“From what I know, determination was a absorption shakeup first,” the erstwhile worker noted, asking to stay anonymous. According to the source, Huobi Group main fiscal serviceman Lily Zheng near the institution a mates of months agone arsenic well.

Huobi did not instantly respond to follow-up questions from Cointelegraph.

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