- 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.
"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 โฆ 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:
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