The Seychelles-based company is one of the world’s largest exchanges, handling a trading volume of around $370 million in a day, according to data from CoinGecko.
A company spokesperson told Reuters that Huobi has a “planned layoff ratio” of about 20%. Bloomberg and the Financial Times also reported on the layoff plans on Friday.
“With the current bear market situation, a very small group will be retained in the future,” the Huobi spokesman told Reuters.
Justin Sun, who sits on the company’s board as a member, described the transition as a “structural adjustment” that has not yet begun and is expected to be completed by the first quarter.
Huobi had about 1,600 employees worldwide as of October, according to a Financial Times report.
Huobi’s HT token HT dipped as low as $4.3355 on Friday, losing more than 7% from the previous 24 hours, according to data from CoinMarketCap.
Following the collapse of FTX, crypto traders are looking for clues as to which company will be the next to fall victim to the crisis in digital assets.