Huobi cryptocurrency exchange has verified plans to lay off 20% of its employees as part of the continuous restructuring following Justin Sun’s acquisition of the company.

“The prepared layoff ratio is about 20%, but it is not implemented now,” a spokesperson for Huobi said in a statement to Pandoraland on Jan. 6. The representative emphasized that the claims on Huobi firing as numerous as 40% workers is a rumor.Huobi has actually developed a new organizational structure after the brand-new investors have actually taken over, the representative said, adding that the firm has adjusted business departments. “With the existing state

of the bearish market, a very lean group will be preserved moving forward. The personnel optimization aims to carry out the brand method, enhance the structure, enhance efficiency and go back to the leading 3,” Huobi said.In the statement, Huobi likewise stressed that recent media allegations on the cryptocurrency exchange’s supposed insolvency are untrue. The company’s representative stated:

“We understand the remarks relating to the Huobi App and the security of user properties. Such unfounded and inflammatory rumors not just damage Huobi’s brand image, but eventually affect the interests of Huobi users.”

The news comes shortly after Sun openly resolved rumors of Huobi’s insolvency, stating that the business state of the exchange was great and user possessions were fully protected. He likewise guaranteed that Huobi will “fully respect the legal needs of local staff members.”

As previously reported, Huobi founder and bulk shareholder Leon Li offered his whole stake in the crypto exchange to Sun-linked About Capital in October 2022. Obviously, Huobi subsequently launched its reorganization efforts as some essential executives left the business soon after Sun took control of the firm.Related: Silvergate offered possessions at loss and cut personnel to cover$8.1 B in withdrawals: Report A previous Huobi staff member told Pandoraland that he left the company a number of months earlier as part of a wider shift when it was reported that Sun was getting Huobi.” From what I know, there was a management shakeup first,”the previous worker kept in mind, asking to remain confidential. According to the source, Huobi Group primary monetary officer Lily Zheng left the business a couple of months ago as well.Huobi did not instantly respond to follow-up questions from Pandoraland.