Lily Zheng, the Huobi Group CFO, and other important Huobi executives are said to have left the company a few months ago as a result of the takeover by the new shareholders.
Following Justin Sun’s takeover of the company, Huobi, a cryptocurrency exchange, has announced plans to cut 20% of its workforce as part of an ongoing restructuring.
A Huobi spokesman highlighted that although it hasn’t yet been put into effect, the intended layoff ratio is roughly 20% and that there is no truth to the claims that Huobi has fired up to 40% of its workforce.
The spokeswoman for Huobi explained that following the acquisition by the new shareholders, the company has created a new organizational structure and altered its business divisions.
“With the current state of the bear market, a very lean team will be maintained going forward. The personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency and return to the top three,” Huobi said.
Huobi further emphasized in the statement that recent media claims about the apparent insolvency of the cryptocurrency exchange are unfounded. The spokesperson of the company said:
“We are aware of the comments regarding the Huobi App and the safety of user assets. Such unfounded and inflammatory rumors not only damage Huobi’s brand image, but ultimately affect the interests of Huobi users.”
The information was released shortly after Sun officially denied allegations that Huobi was bankrupt, asserting that the exchange’s operations were in good shape and that user assets were completely safeguarded. Huobi will “completely respect the legal demands of local employees,” he further pledged.
Huobi founder and primary shareholder Leon Li sold all of his shares in the cryptocurrency exchange to Sun-linked About Capital in October 2022. As some important executives left the company immediately after Sun took over the company, it appears that Huobi then started its reform efforts.