KuCoin Denies Rumours Of 30% Staff Cut, Here’s Their Side Of The Story

Cryptocurrency exchange KuCoin has denied reports that the company plans to conduct a massive staff layoff. However, it has confirmed intentions to conduct regular performance evaluations, which may decrease its staff numbers.

News surrounding KuCoin’s alleged staff layoff emerged on Tuesday when reporter Colin Wu tweeted that the Seychelles-based company planned to dismiss 30% of its labor force of about 1000 personnel.

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

Citing three anonymous sources, Colin Wu stated that the main reason behind this layoff was a fall in the exchange profits due to its newly imposed Know Your Customer (KYC) policy and an ongoing lawsuit in the United States.

Back in March, New York Attorney General Letitia James charged the exchange to court for failure to register with the state before providing a platform for users to trade cryptocurrencies. 

On July 15, KuCoin also introduced a mandatory know-your-customer procedure which requires full completion before trading or making deposits on the platform. Colin Wu reported that both factors led to a substantial decrease in KuCoin’s revenue. 

Related Reading: Binance Massive Layoff: Over 1,000 Employees Fired

KuCoin Undergoing Structural Evaluation, Not Layoffs – CEO Says

Following reports of an impending massive staff layoff by KuCoin, the company’s CEO, Johnny Lyu, took to Twitter to publicly clarify the company’s position. 

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

According to Lyu, the KuCoin exchange is performing “smoothly,” which could respond to claims about the company’s falling revenue. Lyu stated that the KuCoin H1 2023 performance report indicated a significant increase in users and new token listings.

Regarding the main issue on the ground, Johnny Lyu claimed the exchange was not conducting layoffs; instead, it was allegedly “regularly examining staff performance and company growth” as it aims to remain a top crypto exchange. Lyu said:

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.

Finally, the KuCoin CEO affirmed the company’s intentions to keep developing its core businesses. 

Related Reading: Layoffs Not The Only Cost-Cutting At Binance As Employee Benefits Follow Suit

Crypto Layoffs In 2023

Staff layoffs have been a popular headline in the crypto space for 2023. Back in January, cryptocurrency exchanges Crypto.com and Huobi each laid off 20% of their staff, leading to the dismissal of about 900 and 300 workers, respectively.

The following month, crypto data analytics firm, Chainalysis also laid off 48 of its 900 employees, claiming to be undergoing a “reorganization plan.” 

Recently, the world’s largest crypto exchange Binance also laid 1,000 employees amidst scrutiny by various regulatory bodies worldwide. WSJ reports this layoff could likely be part of the exchange’s plan to shed off one-third of its workforce.