Binance responds to layoff rumors, denies 20% staff cut

Binance, the world’s largest crypto exchange by market capitalization, responded to rumors about the company cutting its staff by 20%.

No 20% staff cut says Binance executive 

Binance, whose total headcount is about 8,000, reportedly laid off 20% of its workforce, with speculation that the development was a result of the current general crypto market conditions. 

However, Binance CEO Changpeng Zhao responded to the ongoing rumors, calling it FUD (fear, uncertainty, doubt).

According to Zhao, the company has a program that lays off people who are not adequate for the firm, adding that there is no specific percentage of people that Binance will let go. The CEO also stated that the crypto exchange was still hiring more people. 

Also, Binance’s chief communications officer Patrick Hillman clarified that the firm was not cutting down 20% of its staff to manage costs, contrary to reports.

In a tweet thread, Hillman claimed that the cryptocurrency exchange has seen impressive growth in five years while adding that the company constantly carried out a “talent density audit.” 

“Like previous exercises, this will be done after several teams (including HR, Risk, and Operations) finalize that talent density audit. There is no specific number, just direction on where we need to streamline. This has frankly been part of Binance’s secret sauce.”

Patrick Hillman, Binance chief communications officer.

The Binance executive did not reveal the number of employees that were recently laid off but said the figure could be lower than 20%. Hillman stated that the specific number will be known after all teams carry out the talent density audit. 

Binance, which has been in the crosshairs of U.S. regulators, has also been involved in various expansion efforts, with the company recently extending its services to Thailand.