• Reports emerged on Wednesday that crypto exchange Binance is undertaking sizable layoffs.
• Binance Chief Communication Officer, Patrick Hillmann, clarified that the exchange is not cutting 20% of its employees as a cost-cutting measure but said it would “streamline” after experiencing exponential growth over the past five years.
• Binance CEO Changpeng Zhao clarified claims off as FUD, saying the exchange has a “bottom out” program where it continually greets employees it deems “not strong fits with the company.“
Reports of Layoffs at Crypto Exchange Binance
Reports emerged on Wednesday that crypto exchange Binance may have cut its staff by as much as 20%. Patrick Hillmann, Binance’s Chief Communication Officer, clarified the matter via a Twitter thread stating that this was not a cost-cutting measure but rather an effort to streamline operations after experiencing exponential growth during the past five years.
Binance CEO Clarifies
In response to these reports, Binance CEO Changpeng Zhao took to Twitter to explain the situation and dispel rumors of layoffs due to cost-cutting measures. He stated that the company actually had a „bottom out“ program in which they say goodbye to people who are not strong fits with their culture or situation. He noted that many of these were great people or high performers, but may not fit their unique culture/situation. Zhao also reiterated that despite declining market share,the company is still appointing new employees.
Facing Regulatory Action
The exchange has faced unprecedented regulatory action in recent months and has seen a decline in market share according to The Block. In March of this year, however, Binance announced they were not planning layoffs but would grow its headcount even further expecting 15-30% growth in staff size.
Expanding Services
Despite reports of layoffs and declining market share, Binance continues to expand its services and offerings for users around the world. In April 2021 the company launched its Japanese trading platform which will allow Japanese customers access cryptocurrency markets without having to go through intermediaries such as brokers or exchanges based overseas.
Conclusion
It appears clear from statements made by both Patrick Hillmann and Changpeng Zhao that there are no planned large scale layoffs at crypto exchange Binance due to cost-cutting measures despite facing regulatory actions and decreasing market share recently. The company is continuing to appoint new employees while also streamlining operations after experiencing exponential growth over five years; offering services such as its Japanese trading platform for customers around the world.