Binance Denies Layoffs are ‘a Cost-Cutting Measure’

Binance has not denied plans to lay off staff, but pushed back on narrative that layoffs are part of cost-cutting.

Binance CEO Changpeng Zhao showing ok hands in a working office.
Created by Kornelija Poderskytė from DailyCoin
  • Binance is often at the center of controversy.
  • The firm has grabbed headlines for reportedly planning to reduce its headcount by 20%.
  • Binance nonetheless appears to be still hiring.

Fear and uncertainty are common emotions in every market, with the crypto markets no exception. One firm that is often at the center of this fear is Binance, the world’s largest crypto exchange.

In the latest instance, reports indicating that the firm plans to lay off about 20% of its staff have sparked concerns about its health. The reports significantly contrast Binance’s rhetoric of not engaging in layoffs and expanding during the bear market.

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In response to these reports, Binance has not denied plans to lay off staff but has pushed back hard on the narrative that the layoffs are part of cost-cutting measures.

“A Talent Density Audit”

Binance is not cutting 20% of its staff to cut costs, asserted Binance Chief Communication Officer Patrick Hillman at the beginning of a lengthy Twitter thread on Wednesday, May 31.

Hillman described scheduled layoffs as the result of a routine “talent density audit and resource allocation exercise” that occurred every six months. According to Hillman, this process was necessary to keep the company “disciplined and dynamic” in the fast-paced world of crypto with a “healthy pipeline of hungry, innovative candidates.”

The Binance spokesperson disclosed that the current batch of layoffs (though refraining from calling them that) would occur after various departments complete this talent density audit.

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"There is no specific number, just direction on where we need to streamline. This has frankly been part of Binance's secret sauce," Hillman added.

Binance Chief Executive Officer Changpeng “CZ” Zhao also released a similar statement on Twitter, adding that he also pushed for “cost cutting, servers, flights, meals, etc, every week too.”

"This may be why … Binance has stay profitable since month 4 of our inception. From Oct 2017 onwards, through 2 crypto winters, Binance maintained profitability on a daily, weekly and monthly basis," Zhao asserted.

The Binance chief also pointed out that the firm was still hiring. Binance’s career page shows that the firm has 314 openings across several departments.

On the Flipside 

  • Despite the pushback against the narrative of cost-cutting, it is likely still among the considerations made by the firm, but it is unclear whether it is the primary reason.
  • Binance appears to be still hiring.

Why This Matters 

Binance is the world’s largest crypto exchange. Concerns over the firm’s health have spillover effects on the broader crypto market.

Binance plans to offer bank custody to institutional clients. Find out more:

FTX Collapse Prompts Binance to Offer Bank Custody to Big Clients 

Bitfold’s co-founder spoke to DailyCoin about Ledger Recover. Learn more:

‘Always Review Clientele Values’: Bitfold Co-Founder on Ledger Recover

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.