Binance responds to layoff rumors, denies 20% staff cut

By Investor Empires On Jun 1, 2023

Binance, the world’s largest cryptocurrency exchange by market capitalization, has responded to rumors about the company cutting its staff by 20%.

No 20% staff cut, Binance executive says

Binance, which has a total staff of around 8,000, has reportedly laid off 20% of its workforce, with speculation that the development was a result of current general crypto market conditions.

However, Binance CEO Changpeng Zhao responded to the persistent rumors, describing it as FUD (Fear, Uncertainty, Doubt).

4. Another day, another food. about layoff rumors.

Binance has a “minimal” program (maybe we should rename it to something else). We always say goodbye to people who are not strong enough to fit into the company. Many of them are great people or high performers, but they may not be a good fit… https://t.co/YGnZILzd5C

– Czechoslovakia 🔶 Binance (cz_binance) May 31, 2023

According to Zhao, the company has a program to let go of people who are not suitable for the company, adding that there is no set percentage of people Binance will let go. The CEO also mentioned that the cryptocurrency exchange is still hiring more people.

Also, Patrick Heilmann, Chief Communications Officer of Binance, explained that the company did not cut 20% of its staff to manage costs, contrary to reports.

In a tweet, Hillman claimed that the cryptocurrency exchange has seen impressive growth in five years while adding that the company has constantly conducted “talent density audits.”

Let me provide some additional clarity via 🧵.

Binance is not cutting 20% of employees as a cost-cutting measure. binance It has experienced real exponential growth over the past five years – and has grown its staff accordingly. This was a historic operational challenge that had to be overcome. https://t.co/Awmh8PdT8j

– Patrick Hillman (PRHillman) May 31, 2023

“Like the previous exercises, this will be done after multiple teams (including HR, Risk, and Operations) have completed their talent density audit. No exact number, just direction to where we need to simplify. This has honestly been part of Binance’s secret sauce.” .

Patrick Hellman, Chief Communications Officer at Binance.

The Binance CEO did not reveal how many employees were laid off recently but he said the number could be less from 20%. Heilmann said the exact number would be known after all teams had conducted talent density audits.

(embed) https://www.youtube.com/watch?v=XNO4yxw09zg (/embed)

Binance, which has been in the crosshairs of US regulators, has been involved in several expansion efforts, with the company recently expanding its services to Thailand.