Binance CEO Changpeng Zhao (CZ) recently downplayed the significance of the company’s layoffs, saying, “Another day, another FUD.”
The layoffs are rumored to be operating in a bear market.
On May 31, Colin Wu of the Wu Blockchain Twitter account said that multiple sources have confirmed that Binance is planning to lay off employees. Although details on the cuts were “still uncertain”, rumors put the figure at a 20% reduction in numbers.
“The total number of Binance employees is about 8,000, market rumors that the proportion of layoffs in June was about 20%. As of press time, Binance did not respond to this.”
Wu said the layoffs may be due to current market conditions and past overhiring. But hiring continues in some Binance departments.
Later, he included the Binance response cited by The Block. It called for periodic evaluations of employees, resulting in layoffs if performance did not meet expectations or was mismatched with company culture.
Binance remains profitable.
Dismissing the tone of retrenchment, CZ said the company runs a “bottom out” program to assess the fit of employees. Echoing The Block’s quote, he remarked that it essentially lets employees go – adding that, in many cases, it is down to the individual’s potential.
“We continually say goodbye to people who aren’t a strong fit with the company. Many of them are great people or high performers, but they may not be a good fit for our unique culture/position. Small example, WFH Not for everyone.”
CZ said this is an ongoing program that covers many aspects of the business, including cutting general costs, hardware and travel expenses. This push for lean operations is why Binance has been profitable for four months now, he said.
“From October 2017 through 2 crypto winters, Binance maintained profitability on a daily, weekly and monthly basis.”
Concluding, CZ said that Binance is always looking for talented people, and we are still hiring.
Posted in: Binance, Bear Market, Exchanges Author Samuel Wan Analyst at CryptoSlate
Samuel Wan, a finance professional turned full-time crypto content creator, values personal autonomy and personal freedom in his pursuits.
Editor Liam ‘Akeeba’ Wright Editor and Producer at Crypto Slate
Also known as “Akeeba”, Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to drive massive positive change.
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