Huobi Laid Off 20% Of Its WorkForce

When your business grows, you are happy. You want to expand your business quickly when you have the opportunity to do that. The macroeconomic situation plays an important role. Well, then why does a company slash its workforce?

Crypto exchange Huobi Global makes the tough decision to lay off 20% of its workforce. There are more than 1,600 employees working in this exchange. Now when you hear laying off, you take it easy.

Many companies started to let their employees go in 2022 and it is still happening. There is a second or third round of lay off going on this year. The crypto market may change its trend soon. Some say it can be a bull trap. Bitcoin price is still around 23K.

The crypto market does not go up in a straight line, so you cannot expect the market to go up without correction. Trading volume in crypto exchange is low at this time. The daily trading volume of Huobi Global is over $300 million.

If you think about employees who are going to lose their job, you feel terrible. In a situation like this, it would be difficult to get a new job. Even if a company does not lay off its employees, they do not hire new employees anymore.

If you think about the company, they are going through a challenging situation. Huobi Global is not the only one that slashes its workforce, recently crypto exchange Coinbase laid off 20%, and Gemini cut off 10% of its workforce.

Crypto lender Genesis tried to survive and laid off 30% of its employees. But finally, they went out of business and filed for bankruptcy. Every company focuses on reducing operating costs so that it can deal with this challenging situation.

Many things are involved in the market. You can blame them for overexpanding their business in the bull market. They should have been more careful and prepared for this tough situation. They cannot ignore reality. Surviving a hard time is the most important thing.

You have to consider the macroeconomic conditions to make the decision. Sometimes the company has to let its employees go even though they do not want to do that. They have no choice except to make this harsh decision to survive and move on.

So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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