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KiCoin CEO Johnny Lyu has pushed back against describing a reevaluation of KuCoin’s headcount as layoffs.
On Tuesday, cryptocurrency exchange KuCoin dispelled rumors of a 30% layoff, saying it is only normal for the firm to adjust to the demands of a very competitive market.
According to a company spokesperson, KuCoin has no layoffs planned. However, the firm remains within its rights to evaluate itself and take appropriate actions as it deems necessary, added the official. Part of the statement reads:
“As part of a normal process of organization development, we keep doing biannual appraisals to keep up with the competitive market.”
Based on an earlier report by Colin Wu of Wu Blockchain, the Seychelles-based firm intends to show about 30% of its nearly 1,000 employees the exit door. The report claims that several employees have also confirmed the development. Wu says the employees believe that a strict know-your-customer (KYC) policy, which has now eaten deep into the firm’s profits, may be the reason for the intended job cuts.
Wu also claimed that the KYC policy was only recently instituted. That is after the US sued the exchange in March for allegedly violating securities and commodities laws.
KuCoin CEO Reacts to Rumors
KuCoin CEO Johnny Lyu has now weighed in on the report making rounds. While he did not outrightly deny the upcoming job cuts, Lyu pushed back against describing a reevaluation of KuCoin’s headcount as layoffs. He added that the firm, as any other firm would, constantly makes such decisions based on employee performance and other metrics. Lyu claims that such efforts are ultimately about company development. In conclusion, he wrote in part:
“It is not layoffs, and it is all about making the organization more dynamic and competitive.”
Lyu warned against spreading the rumors and noted an earlier report that KuCoin issued earlier this month. The report indicates that the exchange continues to grow, and also notes that KuCoin has recruited at least 300 new employees so far in 2023.
About the KYC policy, the report also addresses that, says Lyu. KuCoin is changing its KYC practices mainly to improve user asset security and comply with global requirements.