KuCoin Dispels Layoff Rumors

The cryptocurrency exchange KuCoin has dispelled allegations that it plans to lay off 30% of its staff, or approximately 300 employees, in the coming weeks.

“We want to clarify that KuCoin has not initiated any alleged layoff plans,” a KuCoin spokesperson said, adding that any potential reductions are part of a larger plan to extend the company’s business development:

“As part of the company’s business development and semi-annual employee performance review, there might be some personnel adjustments as needed, which is a normal process in organizational development.”

In response to rumors of layoffs, Kucoin CEO Johnny Lyu tweeted on July 25 that the cryptocurrency exchange is operating normally.

Lyu explained that any prospective staff reductions would result from a semi-annual employee performance review, which he said is necessary to remain “competitive and dynamic” in the rapidly evolving cryptocurrency industry.

KuCoin’s clarification appeared to be in response to a July 25 post by independent journalist Wu Blockchain, who claimed that KuCoin would shortly 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 recanted its claims after Lyu confirmed the staff reductions were part of a standard performance review.

KuCoin did not specify the percentage of personnel that would be reduced or the positions that would be affected the most.

According to KuCoin, the company currently employs approximately 1,000 people worldwide, which Lyu claims is rising consistently.

The decline in crypto asset prices throughout 2022 compelled many of the industry’s titans, including Binance, Coinbase, and Kraken, to drastically reduce headcounts.

Since May 31 of this year, Binance reportedly laid off over a thousand employees, while Coinbase laid off 18% and then another 20% of its staff in June 2022 and January 20, respectively.

In November, Kraken laid off 1,100 employees, roughly 30 percent of its workforce.

Recent data from March 2023, however, suggests that the rate of unemployment in the crypto industry may now be slowing.