Huobi Crypto expected to cut staff by 30% due to lower revenue

Most crypto product and service companies have seen their revenue drop significantly with the recent trend of events. Additionally, the persistent bear market has dealt a devastating blow to several operating businesses.

There are records of drastic drops in trading volumes even as profitability declines. According to some reports, the 2022 downtrend is turning out to be the worst in the history of digital assets.

With the broader price drop in the market, many traders and investors lost huge funds. In addition, some companies suffer from liquidation problems. Additionally, some digital assets have been experiencing consistent price declines for several weeks. The collapse of TerraUSD has even complicated many people’s opinion regarding the crypto space.

Many traders took panic selling to weather the raging storm of the downward trend in earnings and income. This increases the risks of the critical nature of the market even if the spot price of Bitcoin goes below the realized price. Therefore, some exchanges reduce their operating costs. This quest led to the dismissal of some of their employees.

Huobi is among some of the companies downsizing. According reportsthe crypto exchange is losing around 30% of its workforce due to the current bearish market trend.

Huobi is a leading crypto exchange with a strong operational base in China. However, the suppression of Chinese users and the current weak performance of the market are weighing heavily on the company.

Related Reading | Morgan Creek reportedly vying for $250 million to counter FTX BlockFi bailout

Colin Wu, a notable reporter, revealed Huobi’s downsizing stance via Twitter. He cited a few reasons for the declining workforce: poor profitability and the elimination of Chinese users. However, from Huobi, the crypto exchange has yet to release any statement regarding a possible staff layoff.

Other Crypto Exchanges Are Downsizing

This report on Huobi embarking on downsizing isn’t the only company to take such action in the industry. There have been other crypto exchanges with similar downsizing plans.

Cryptocurrency Market Struggles To Make Higher Progress | Source: Total Crypto Market Cap at TradingView.com

Related Reading | ‘Bitcoin is the only one I’m willing to say is a commodity,’ says SEC Chairman on Crypto Regulation

Coinbase, one of the major US crypto exchanges, has reportedly disclosed a layoff plan for around 18% of its staff. He cited the reason for his action as the prevailing macroeconomic situation. Additionally, Gemini, Crypto.com, and Banxa plan to cut staff by 10%, 5%, and 40%, respectively.

The bear market remains the main reason for the layoff of personnel by these companies. Companies are all trying to control the effects of a drastic drop in their income in their cost management.

Additionally, BlockFi is no slouch in the downsizing movement. The company announced a layoff of 20% of its staff.

Featured image from Pixabay, chart from TradingView.com