Binance Denies Rumors of a New Round of Layoffs
- Binance currently has about 8,000 employees.
- The exchange said it is evaluating its staff quality ahead of the bull market and plans to expand its workforce.
- Binance Chief Communications Officer Patrick Hillman said the reorganization at Binance is done annually and has nothing to do with market conditions.
The crypto exchange Binance has once again denied reports of an alleged layoff round but instead said it plans to “focus on talent density across its organization.” Reports emerged on Wednesday that Binance was set to lay off about 20% of its workforce in June.
Binance‘s recent decision is not a downsizing but an evaluation of its staff quality ahead of the bull market. A Binance spokesperson explained that “this is not a case of rightsizing, but rather reevaluating whether we have the right talent and expertise in critical roles, and therefore we will still be seeking to fill hundreds of open roles.”
Binance Chief Communications Officer Patrick Hillman also denied in a tweet that the exchange is cutting 20% of its workforce for financial reasons. He noted that “Binance is not cutting 20% of employees as a cost-cutting measure. Binance experienced true exponential growth these past 5 years and grew its staff accordingly. This was a historic operational challenge to overcome.”
Hillman noted that the broader growth of the crypto industry “requires competing organizations to remain disciplined and dynamic, unlike any other industry before it.”
“User demand cycles are not months or years; sometimes they are weeks, days, and hours. Therefore reallocating resources internally and keeping a healthy pipeline of hungry, innovative candidates is the lifeblood of crypto organizations,” Hillman wrote on Twitter.
The Binance Chief Communications Officer further claimed that the reorganization at Binance is meant to address the mounting regulatory pressures aimed at crypto service providers. Hillman said organizations are forced to adapt to the changing scene or fall by the wayside.
Reorganization isn’t new at Binance
Hillman’s tweet implied that such a “reorganization” isn’t strange for Binance employees. He claimed that Binance has “regularly gone through a talent density audit and resource allocation exercise every six months or so,” adding that “this is a cyclical process.”
According to Hillman, the exact number of employees will only be known after the teams have completed their talent density audit. As of May, there are 326 available roles across various departments and locations listed on Binance’s career page.
The number of employees at Binance increased from about 3,000 to almost 8,000 during the last bull market. The exchange’s employees are spread across different continents, including Africa, Europe, the Middle East, Asia, and the Americas.
This is not the first time Binance has dismissed reports of layoffs. In March, the exchange confirmed that it plans to fill 500 roles in H1, contrary to reports of a layoff. While Binance has a strong grip on the crypto market, its users are concerned by its declining relationship with US regulators, particularly the SEC and CFTC.