Binance CEO Changpeng Zhao (CZ) has acknowledged that his exchange is indeed undergoing some workforce reductions, but he refutes the media’s claim of exaggerated numbers.
In a tweet over the weekend, CZ stated, “As we continuously strive to enhance talent density, there have been involuntary terminations. This is a common occurrence in any company.”
The tweet was in response to a Wall Street Journal report on Friday, which suggested that Binance was letting go of “over 1,000 employees,” potentially amounting to approximately one-third of its workforce.
Prior to the recent round of layoffs, Binance had a workforce of roughly 8,000 employees, according to the WSJ report.
In his tweet, CZ expressed that the number of workers being laid off, as reported in the media, was significantly exaggerated, and he referred to such reporting as “FUD” (short for ‘fear, uncertainty, and doubt’).
He also emphasized that despite the ongoing changes, Binance is still actively hiring new employees.
A surprise for the community
The report about the layoffs at Binance was indeed surprising for many in the crypto community, given the exchange’s reputation as one of the financially strongest and prominent players in the industry.
In the past, CZ had consistently mentioned that Binance utilized bear markets as an advantageous time to expand its workforce and develop new products. He highlighted this strategy during a speech at the Web Summit in Lisbon the previous year, stating that “it’s easier to hire talent in the bear market,” and expressing that the company saw such periods as opportunities to recruit skilled individuals and foster growth.
Despite previous promises and Binance’s reputation as one of the most financially robust exchanges in the industry, it appears that the company has now joined its competitors in downsizing to adapt to the current market conditions.
Interestingly, Binance’s six-year anniversary coincided with the release of the Wall Street Journal story detailing the layoffs. Nonetheless, the exchange remained optimistic about the future, expressing excitement for what lies ahead in a tweet commemorating the milestone.
