Binance denies layoff reports, claims operations are normal

KuCoin has refuted a report that it plans to lay off 30% employees, saying that the staffing changes are part of its normal operations.
Johnny Lyu, CEO of the Seychelles-based cryptocurrency exchange, said on Twitter: “This is not a layoff,” adding that the company regularly evaluates its organizational structure based on employee performance and company development.
A KuCoin spokesperson told Coin Telegraph that the company “has not initiated any so-called layoff plan,” but added that as part of the semi-annual performance review, “there may be some personnel adjustments, which is a normal process in organizational development.”
Media platform Wu Blockchain previously tweeted that KuCoin will lay off 30% of its nearly 1,000 employees, and three internal employees confirmed the information. The reason for the layoffs was the decline in profits after the legal action was taken against it in the United States, and then the implementation of a strict "know your customer policy".
Lyu said the company was operating smoothly, with "strong growth in both users and new listings" in the first half of the year, and that the "talented team is steadily expanding."
He said the changes were not intended to drive employees away but to keep the exchange competitive.
He said: “The cryptocurrency world changes very quickly. In order to stay ahead, we regularly evaluate our organizational structure based on employee performance and company development. So this is not about layoffs, but about making the organization more dynamic and competitive.”
While KuCoin said it had not reduced its staff, many companies have made layoffs as the crypto winter has eroded profits and inflation has pushed up costs.
Kraken laid off 30%, or about 100 employees, in November last year. Coinbase laid off 18% of its employees in June last year.
Coinbase laid off an additional 20% employees, or about 950 people, in January of this year. In May, Binance laid off more than 1,000 employees to reduce expenses and maintain profitability.
The tech industry as a whole has also laid off tens of thousands of employees, but some companies are recovering and layoffs have eased in recent months.