Binance has made significant workforce reductions as its market share continues to decline. The decision comes as a surprise, considering the company’s earlier claim that there were no plans for job cuts.
The news of Binance’s layoffs surfaced after Wu Blockchain, a prominent figure in the crypto industry, tweeted about the downsizing. In response to the tweet, a spokesperson from Binance informed The Block that the company periodically reviews talent allocation to ensure resources are appropriately allocated. This sometimes results in letting go of underperforming employees or those who don’t align with the company’s culture, media reports said.
Importantly, Binance clarified that this was not a downsizing effort, but rather a reevaluation of talent and expertise in critical roles. The company plans to fill hundreds of open positions to meet the evolving demands of users and regulators.
Prior to the layoffs, Binance had an approximate headcount of 8,000 employees. The exchange did not disclose the exact number of individuals affected by the cuts. Interestingly, this downsizing comes in contrast to Binance’s previous statement in March, where they explicitly stated that there were no plans for layoffs. In fact, during that time, Binance aimed to fill an additional 500 roles by the end of June, with over 300 positions still open on their website.
Changpeng Zhao, the CEO of Binance, addressed the situation on Twitter, referring to Binance’s ongoing program of parting ways with individuals who don’t fit the company’s unique culture. He clarified that this program is a regular occurrence and not tied to a specific percentage of employees.
Despite the layoffs, Binance remains optimistic about the future, emphasizing their commitment to delivering for their users and expressing excitement about growth and innovation within their ecosystem.
According to Binance spokesperson Patrick Hillmann, the layoffs were not driven by cost-cutting measures but were part of a cyclical talent audit and resource allocation exercise.
