Binance reportedly slashes 1600 jobs in first round of job cuts

abdelaziz Fathi

Sources, including Chinese reporter Colin Wu who operates blockchain-focused Twitter account WuBlockchain, claimed that Binance has begun a series of job cuts. The independent journalist suggested that the world’s largest crypto exchange, which currently employs roughly 8,000 individuals, might have reduced its workforce by approximately 20%.

Binance CEO Changpeng Zhao

A Binance representative told the crypto media that the firm is merely prioritizing talent density throughout the organization to maintain its agility and adaptability as they are gearing up for the next bull cycle. He confirmed that the move is not a matter of downsizing, but rather a reassessment of whether they have the necessary talent and expertise in key positions. Consequently, Binance will continue to actively recruit and fill hundreds of vacant positions, he added.

While the specific reasons for the reported layoffs are currently uncertain, there are several factors that could have influenced the decision. The so-called crypto winter and unfavorable market conditions have apparently impacted the revenue and profitability of Binance, potentially leading to adjustments in their workforce.

Additionally, the rapid expansion of Binance in recent years could have been a contributing factor to the reported layoffs. As the company aggressively expands its operations, launches new products and services, and enters new markets, it may require periodic evaluations of its workforce to optimize operational efficiency.

Contrary to previous reports, Binance said in March that it doesn’t to carry out any layoffs. Instead, the exchange posted ads to fill an additional 500 positions by the end of June, taking a somewhat contrarian view. CEO Changpeng Zhao also said Binance is planning a hiring spree in 2023, adding that the exchange increased head count in 2022 from 3,000 people to 8,000.

Binance isn’t alone in dealing with the effects of crypto’s collapse. Many other platforms slashed hundreds of jobs amid huge withdrawals and regulatory scrutiny after the implosion of FTX. The cuts were also prompted by macroeconomic and geopolitical factors, which muted customer demand, lowered trading volumes and cut sign-ups.

On top of those pieces of news was Coinbase, which cut about 950 jobs, or 20% of its workforce. That was its third round of layoffs in less than a year. Kraken followed Coinbase’s move and let 30% of its workforce let to go, around 1,100 of its employees.

In January, laid off 20% of its corporate workforce, or nearly 1000 people, in order to adapt to current market conditions. Barry Silbert’s Digital Currency Group also cut nearly 13% of its headcount to ride out a downturn in the crypto sphere.

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