KuCoin CEO Sheds Light on Allegations of Mass Layoffs
The past two years have been nerve-wracking for employees of crypto trading platforms, as lawsuits by various regulatory bodies, declining profits, and other market conditions have unfortunately forced even the strongest to conduct layoffs.
Binance, Kraken, and Coinbase have all been forced to dismiss employees numbering in the thousands. The biggest layoff spree was conducted by Coinbase, who cut 18% of its workforce last year, followed by another 20% of the remaining employees later on.
Layoff Rumors Announced by Wu Blockchain
Yesterday, veteran crypto journalist Wu Blockchain announced that mass layoffs were coming to KuCoin as well. According to several unnamed firm employees, over 30% of the exchange’s staff members would be terminated.
SCOOP: Following Binance, cryptocurrency exchange KuCoin will lay off 30% of its workforce. Confirmed by more than three internal employees. KuCoin has nearly 1,000 employees. The main reason is that the strict KYC policy was launched after being sued by the United States, which…
— Wu Blockchain (@WuBlockchain) July 25, 2023
However, the CEO of KuCoin quickly stepped in to address the news, clarifying that no mass layoffs are waiting in the wings.
Performance Reviews and Core Business Practices
According to Johnny Lyu – the CEO of KuCoin – the exchange is doing fine. Contrary to what the internal employees who reached out to Wu have stated, the exec said his team is “expanding steadily.”
1/ I’m aware of some rumors floating around about KuCoin. Let me clarify a few points and share a clear picture of how we’re doing.
— Johnny_KuCoin (@lyu_johnny) July 25, 2023
Lyu did not deny that some of his employees would be cut shortly. However, he clarified that the layoffs would be tied to an upcoming performance review that would be carried out to ensure that KuCoin stays competitive.
“The crypto world changes fast. To stay on top, we regularly evaluate our org structure based on employee performance and company development. So it is not layoffs, and it is all about making the organization more dynamic and competitive.”
Furthermore, Lyu did not clarify just how many employees would potentially be affected by a negative performance review.
Therefore, it’s possible that Johnny Lyu’s Twitter intervention is nothing more than an attempt at good PR, seeing as the original rumors were not outright denied. Technically, a performance review carried out with the extent of eliminating “underperformers” could very well lead to a targeted workforce reduction of thirty percent or more.
It remains to be seen whether the allegations are mere FUD or whether KuCoin really is struggling. However, it’s worth noting that the exchange is already dealing with a lawsuit filed by the New York attorney general. KuCoin has also allegedly been working on implementing better KYC procedures in order to ensure complete compliance with the standards imposed by the U.S. Government.
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