Following reports of significant layoffs, Binance recently shared that it is meticulously examining its staff in top roles while determining which products and business departments should receive the most resources. Interestingly, a spokesperson indicated that the exchange plans to continue hiring personnel.
Binance states that as they prepare for the next significant bull cycle, it has become apparent that concentrating on talent density within the organization is essential to maintain flexibility and dynamism. Rather than being a case of rightsizing, the process involves evaluating if they possess the right talent and skill in critical roles. Consequently, the company plans to fill hundreds of open positions.
Blockchain analyst Colin Wu was the first to report on the alleged layoffs, suggesting that nearly 20% of Binance’s 8,000 employees were impacted. A source inside Binance substantiated the claims, confirming that layoffs had been occurring as early as March of this year. Currently, Binance has more than 300 job vacancies listed on its website.
The spokesperson added that re-examining the company’s workforce also encompasses analyzing specific products and business divisions. This ensures that resources are efficiently allocated based on the needs of users and regulators.
While the spokesperson did not confirm or deny job cuts, it is worth noting that Binance CEO Changpeng Zhao mentioned during Switzerland’s Crypto Finance Conference in January that the company had doubled its headcount in 2022 from 3,000 to nearly 8,000. Moreover, Zhao projected a 15%-30% increase in staff during 2023.
These staff evaluations by Binance follow those of other crypto companies, such as Coinbase, which announced additional layoffs amid challenging market conditions. Coinbase CEO Brian Armstrong declared in a January blog post that 950 employees would be let go, following staff reductions of 18% in June.
In conclusion, while layoffs are a cause for concern, Binance’s efforts to refine and optimize its workforce and resource allocation within the company should be taken into account. The exchange has every intention of expanding and hiring more employees to fill vital roles, indicating confidence in both the company and the crypto industry’s future growth.
Source: Blockworks
