• Binance is often in the center of controversy due to reports that they plan to reduce headcount by 20%.
• Binance has denied that these layoffs are part of cost-cutting measures and instead attribute them to a talent density audit.
• Binance CEO Changpeng Zhao also released a statement on Twitter, noting that the company had stayed profitable since month 4 of its inception.
Binance Denies Layoffs are ‘a Cost-Cutting Measure’
Binance, the world’s largest crypto exchange, is often at the center of controversy. Recently, reports emerged indicating that the firm plans to lay off about 20% of its staff sparking concerns about its health. However, Binance has denied that these layoffs were done for cost-cutting reasons and instead said it was part of their routine “talent density audit and resource allocation exercise”.
Fear and Uncertainty in Crypto Markets
Fear and uncertainty are common emotions experienced within all markets but especially so in the volatile crypto markets. This fear has been amplified with reports claiming that Binance would be reducing its headcount by 20%. As a response to this news, Binance has tried to quell any speculation regarding cost-cutting being behind this decision.
The Talent Density Audit
Chief Communication Officer Patrick Hillman asserted that these layoffs were not rooted in cost-cutting but instead due to a regular “talent density audit and resource allocation exercise” which occurred every six months. According to Hillman, this process was necessary for keeping up with the fast pace of developments within crypto whilst maintaining an ample amount of “hungry innovative candidates” within their workforce. He also commented on how there was no specific number planned for cuts but rather just direction towards where areas needed streamlining.
Statement from CEO CZ Zhao
CEO Changpeng Zhao also released a similar statement on Twitter adding that he too pushed for “cost cutting, servers, flights, meals etc., every week too“. He noted how this may have been why Binance had stayed profitable since month 4 after its inception despite traversing two crypto winters since then.