More Trouble For Binance?• June 1, 2023 10:01 am • Comments
Binance seems to be having a year mired in fear, uncertainty, and doubt.
A lack of regulatory clarity, the collapse of several major exchanges—most notably FTX, a crypto bear market, hostile governments, and poor economic conditions are just some of the reasons investors are spooked.
Recent announcements from the world’s most popular crypto exchange are not helping Binance’s image or reputation among investors either. …
According to recent reports, Binance will cut a significant portion of its workforce in 2023—the rumor is that the cuts will be around 20% of the exchange’s current team.
ChangPeng Zhao, the current CEO, and founder of Binance, responded to the current round of FUD making its way around the internet:
4. Another day, another FUD. On rumors of layoffs.
Binance has a "bottom out" (we should probably rename it to something else) program. We constantly say goodbye to people who are not strong fits with the company. Many of them are great people or high performers, but may not fit… https://t.co/YGnZILzd5C
— CZ 🔶 Binance (@cz_binance) May 31, 2023
The crypto community on Twitter was quick to respond to CZ’s tweet, many were skeptical that the layoffs had nothing to do with Binance’s financial condition.
Binance: We’re not doing any layoffs, it’s a talent density audit.
— Bitfinex’ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) June 1, 2023
Last year, CZ said “beware of platforms that have layoffs.”
Binance is now laying off employees. pic.twitter.com/FVxb7cYbbe
— Milk Road (@MilkRoadDaily) May 31, 2023
According to Binance, the June layoffs plan is not a case of rightsizing and strong new user registration remains intact. The crypto exchange emphasized seeking talents to take up hundreds of vacant roles. There are currently 326 job openings on its career page.
Instead of downsizing, Binance is rather reallocating resources.
So basically, we need to be wary of Binance? CZ did tweeted to beware of platforms that have layoffs. Today, Binance started laying off people instead of hiring 500 new staffs he confidently promised 2 mths ago. pic.twitter.com/qHCyvs6HxA
— MetaRyuk (@metaryuk) May 31, 2023
DailyCoin reports that the exchange claims the layoffs aren’t financially related:
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.”
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