Media reports of Binance layoffs

The bitcoin exchange Binance has begun layoffs. The share of laid-off staff is reportedly 20%, according to reporter Colin Wu 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

CEO Changpeng Zhao dismissed the journalist’s report as “just another FUD». According to him, the company regularly sheds workers who “are not a good fit”.

He acknowledged that the layoffs are tied to ongoing cost-cutting demands across units. Zhao said there is no specific plan for the scale of the headcount reductions.

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

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 described the process as cyclical, occurring roughly every six months.

«As in previous cases, this will be done after several groups (including HR, Risk, and Operations) complete the talent-density audit. There is no specific number; only the direction in which we need to optimise», — 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’s staff count is around 8,000. In March a company spokesperson stated plans to hire 500 new workers in the first half of the year.

The company’s site lists more than 300 open positions. Zhao and Hillmann confirmed that Binance continues to hire staff.

Since February, the exchange’s share of consolidated trading volume across centralized platforms has fallen below 50%.

This followed regulatory scrutiny from regulators in the United States, Brazil and Australia.

In May, the exchange announced it would wind down operations in Canada amid tighter regulatory requirements.