Bitcoin exchange Binance has started layoffs. Presumably, the share of laid-off staff will be 20%, reporter Colin Wu said, citing his own sources.
SCOOP: According to multiple sources who confirmed to WuBlockchain, Binance has started layoffs, and the proportion is still uncertain.
The total number of Binance employees is about 8,000, market rumors that the proportion of layoffs in June was about 20%. As of press time,…
— Wu Blockchain (@WuBlockchain) May 31, 2023
Binance CEO Changpeng Zhao called the journalist’s message “another FUD”. According to him, the company is constantly getting rid of workers who are “not too suitable.”
He acknowledged that the layoffs are due to constant demands on the divisions to cut costs. At the same time, Zhao said that there is no concrete plan for the volume of labor force cuts.
4. Another day, another FUD. On rumors of layoffs.
Binance has a “bottom out” (we should probably rename it to something else) program. We constantly say goodbye to people who are not strong fits with the company. Many of them are great people or high performers, but may not fit… https://t.co/YGnZILzd5C
— CZ 🔶 Binance (@cz_binance) May 31, 2023
Binance Chief Strategy Officer Patrick Hillmann denied plans to lay off 20% of employees to optimize costs. However, he acknowledged that the exponential growth of the staff of the exchange in the past five years has required a revision of the allocation of resources in the current market phase.
Let me provide some additional clarity via 🧵.
Binance is not cutting 20% of employees as a cost-cutting measure. @binance experienced true exponential growth these past 5 years—and grew its staff accordingly. This was a historic operational challenge to overcome. https://t.co/Awmh8PdT8j
— Patrick Hillmann (@PRHillmann) May 31, 2023
He called this process cyclic, occurring in the company about once every six months.
“As in previous cases, this will be done after several groups (including HR, risk and operations management) have completed their density audit. There is no specific number, there is only the direction in which we need to optimize,” wrote Hillmann.
Like previous exercises, this will be done after several teams (including HR, Risk, and Operations) finalize that talent density audit. There is no specific number, just direction on where we need to streamline. This has frankly been part of Binance’s secret sauce.
— Patrick Hillmann (@PRHillmann) May 31, 2023
According to The Block, Binance has a staff of around 8,000. In March, a representative of the exchange announced plans to hire 500 new workers in the first half of the year.
More than 300 vacancies appear on the company’s website. Zhao and Hillmann confirmed that Binance continues to hire employees.
Since February, the share of the exchange in the total trading volume of centralized platforms has fallen below 50%.
This happened against the backdrop of claims against Binance from regulators in the US, Brazil and Australia.
Recall that in May, the exchange announced the end of operations in Canada due to the tightening of regulatory requirements.
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