Binance Implements Cost-Cutting Measures as Profits Decline

• Leading cryptocurrency exchange Binance prepares to lay off at least 1,000 employees. 
• According to an insider source, Binance is making this move, in a bid to cut down on quantity and pour its resources into talent nurturing. 

As reported by The Wall Street Journal and CNBC, Binance will be letting go of at least 1,000 employees worldwide. It is also worth noting that Binance is yet to officially state the exact amount of employers that could be pulled out of the company.

However, an insider source revealed that the layoff goes back to the company’s commitment to nurturing talent, in preparation for the next bull market. Since its inception, Binance has successfully onboarded nearly 8,000 employees from different parts of the world. However, with the continuous layoff from the exchange, the amount is expected to reduce to 7,000 or 6,000 and under in the long term.

In an email sent to Banking Dive, the spokesperson is quoted saying;

Over the last 6 years, we have grown from 30 to a team of almost 8,000 across the globe. As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic.

The spokesperson further explained that Binance is not attempting to rightsize its workforce. Instead, the company is reevaluating its employees, to make certain that it has the right talent and expertise in critical roles.

As such, Binance will be inspecting some of its products, business units, staff benefits, and policies to ensure that all available resources are allocated to the right sources, to delectable the evolving demands of users and regulators.

According to reports from the Wall Street Journal, the exchange had already previously laid off 1,000 employees. On the other hand, according to CNBC, the numbers might be even higher. The media outlet claims that Binance previously laid off anywhere from 1,500 to 3,000 employees.

CEO of Binance takes to Twitter to debunk media reports

Meanwhile, some media outlets are speculating that there is an ulterior motive behind Binance’s latest move. CNBC insists that the layoff has little to nothing to do with talent density, and claims that the current Justice Department probe is forcing Binance to make these changes to its workforce.

CNBC reveals that an anonymous employee is claiming that the ongoing probe from the Justice Department will have a massive impact on the exchange, which “will likely reshape the company fundamentally.”

Meanwhile, Changpeng Zhao, the CEO of Binance, brands these claims as FUD. According to CZ, the media is pushing a false narrative.

In a recent tweet shared to his 8.5 million followers, CZ is quoted saying ;

As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD. On the bright side, they just can’t resist talking about us. We are still hiring.

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