As rumors swirl and speculation mounts, Binance, one of the largest cryptocurrency exchanges in the world, has vigorously denied allegations of a 20% headcount cut. The exchange’s CEO, Changpeng Zhao, took to Twitter to address the issue, calling it “FUD” (Fear, Uncertainty, and Doubt).
While Chow denied the allegations, he went ahead to articulate the industry’s ever-changing dynamics and the need to stay agile. In particular, Binance affirms its commitment to talent optimization and cost efficiency.
Cut employees dismiss the allegations
On Wednesday, Chinese reporter Colin Wu, known for his blockchain-focused Twitter account WuBlockchain, said: subscriber A report indicates that Binance has initiated a massive round of layoffs, amounting to nearly 20% of its workforce.
WuBlockchain sources claimed that around 8,000 employees have been affected by the alleged job cuts. However, CEO Changpeng Zhao was quick to refute the rumors and referred to it as “Food”.
chief executive officer chirp: “Another day, another food. About layoff rumors.” Zhao also addressed the issue directly, emphasizing that the company runs a continuous talent improvement program, ensuring that the company maintains a strong cultural alignment.
He stated that although some of the employees may be high performers, they may not fit into Binance’s unique culture and situation, which will lead to their departure from the company. The CEO stressed that ongoing talent improvement efforts should not be misunderstood as a predetermined percentage of employees who need to be laid off.
CZ tweeted:
Binance has a “minimum” program (maybe we should rename it something else). We always say goodbye to people who are not strong enough to fit into the company. This program is stable. I press for it on a weekly basis.
Binance’s chief communications officer, Patrick Hellman, is also join Conversing on Twitter, he vehemently denied the alleged layoffs. Hillman highlighted the challenges faced by cryptocurrency enterprises, stressing the need to remain adaptable and competitive in the ever-evolving digital currency industry.
He described the audit of talent density and resource allocation that the exchange regularly undergoes, stating that it is part of the exchange’s “secret sauce”. Reiterating Binance’s commitment to retaining and hiring top talent, Hillman highlighted the attractiveness of former employees to recruiters around the world.
Binance Navigating Challenges
Binance, one of the leading exchanges, has been no stranger to controversies and regulatory challenges in various jurisdictions. Amidst the sudden recovery from the FTX crash late last year, Binance suffered a significant FUD as some in the crypto community expected the FTX contagion to affect the exchange.
However, the cryptocurrency exchange not only became strong after the FTX crash, but also played a major role Creation of $1 billion in cryptocurrency industry funds For companies experiencing financial crisis. Meanwhile, in recent months, the exchange has engaged in ongoing regulatory scrutiny of cryptocurrencies.
Recently, South Korea made clear its intention to introduce a system that enables real-time monitoring of wallet addresses and facilitates the freezing of funds on various crypto exchanges, including Binance.
Regardless of the current negativity and regulation surrounding Binance, the exchange’s native token, BNB has managed to maintain its composure and hasn’t fallen as expected. Instead, BNB has only seen a 0.1% decline in the past seven days, and a loss of 0.7% in the last 24 hours with the price still trading above $300.
Featured image from Unsplash, chart from TradingView