KuCoin CEO Denies Layoff Rumors & Explains Normal Operations

CEO Johnny Lyu emphasizes performance evaluation as the reason behind workforce adjustments amid the fast-paced crypto sector.
KuCoin raises $150 million at a $10 billion valuation

Recently rumors about the crypto exchange KuCoin’s plans to lay off 30% of its workforce or around 300 employees were being circulated. However, the CEO of KuCoin, Johnny Lyu, addressed these rumors and clarified that the exchange is still operating smoothly.

Johnny Lyu explained that any potential staff cuts would be part of a semi-annual employee performance evaluation, which is necessary to stay competitive and dynamic in the fast-paced crypto sector. 

The rumors emerged due to a post by an independent journalist, Wu Blockchain, who claimed that the layoff was a result of a strict Know Your Customer (KYC) policy in the United States, leading to a decline in profits for the exchange.

KuCoin did not provide specific details about the percentage of staff to be cut or which positions would be impacted the most. The company currently employs around 1,000 staff worldwide, and according to Johnny Lyu, this number is steadily increasing.

The decline in crypto asset prices throughout 2022 had led to significant headcount reductions in major exchanges like Binance, Coinbase, and Kraken. Binance reportedly laid off over 1,000 employees, while Coinbase and Kraken also had substantial staff cuts.

Also Read: Binance Faces Layoffs Amidst Regulatory Pressure

While recent data from March 2023 suggests that the rate of layoffs in the crypto industry is now slowing down. This indicates a possible stabilization and recovery for the sector.

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