Mass layoffs at Binance? Company accepts to “reassess” roles

Binance – the world’s largest cryptocurrency exchange – has confirmed it is “re-evaluating” its talent base following an external report that the firm plans to lay off around 20% of its workforce next month.

The report contrasts with Binance’s position of strength last year, which stood out among industry leaders for continuing to expand during the bear market.

Binance to cut workers

Popular Chinese crypto reporter Colin Wu on Wednesday Said He had confirmed with “multiple sources” that Binance had begun laying off employees. While the current proportion remains uncertain, estimates suggest that the number of furloughed employees could be as high as 20% of Binance’s 8,000-person workforce.

“Some departments are still continuing to recruit,” Wu clarified. “The layoffs may be related to the poor overall market and earlier large expansions.”

About a year ago, Changpeng Zhao, CEO of Binance Claim The exchange was sitting on a “healthy war chest” due to relatively frugal spending during the previous year’s bull market.

Unlike rival exchanges such as coinbase and Crypto.com who were cutting their headcount, Binance Confirmed that it will hire more than 2000 employees at that time.

not “rightsizing”

Obviously, things haven’t changed on that front. in message to crypto potato On Wednesday, a Binance spokesperson said the firm is still looking for new talent to “fill hundreds of open roles.”

“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure that we remain agile and dynamic,” the spokesperson said. “It is not a matter of authority, but a re-evaluation of whether we have the right talent and expertise in key roles.”

The representative said the company would look at “certain products and business units” to ensure that its resources were properly allocated.

Binance’s chief communications officer, Patrick Hillman, also stressed that the company was not laying off the 20% “as a cost-cutting measure”. Rather, it is part of a “talent density audit and resource allocation exercise” the company conducts on a cyclical 6-month basis.

“We have amazing talent at Binance and we will continue to retain and hire more top talent,” he added.

We have amazing talent at Binance and we will continue to retain and hire more top talent. When we get to part with an employee, they immediately become a high-value target for recruiters around the world looking to locate client digital assets.

— Patrick Hillman (@PRHillmann) May 31, 2023

Despite slow business activity last year, major crypto companies like coinbase And The Block reported a massive quarter-on-quarter revenue improvement in Q1 2023, as the crypto market bounced back well from its November lows.