Binance to lay off employees in June due to increased regulatory scrutiny.
Earlier this year, Binance announced that it would not lay off any employees; however, the company has since decided to execute a new round of layoffs in June. This is following a significant downsizing in the cryptocurrency space in January, during which the company pledged to increase its headcount by 15% to 30% by 2023. In March, the company stated that it had no intention of dismissing its employees.
According to a tweet by Wu Blockchain, the June layoffs have begun, and it is rumored that about 20% of the 8,000 employees will be affected. The tweet also revealed that the victims would receive compensation based on different situations in different jurisdictions. Despite the planned layoffs for June, some departments within Binance are still recruiting more talent. Notably, the company is currently experiencing a shrinking market share.
Binance Announces June Layoffs amid Scrutiny
Binance claims that the June layoffs are not a case of rightsizing and that there has been no decrease in new user registrations. The company emphasized that it is seeking talent to fill hundreds of vacant positions, as indicated by the 326 job openings on its career page. Instead of downsizing, Binance is reallocating its resources. A spokesperson stated that the company periodically reviews its talent to allocate them to the best teams with the appropriate resources, which may result in letting go of some underperforming staff members.
“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 be seeking to fill hundreds of open roles. This will include looking at certain products and business units to ensure our resources are allocated properly to reflect the evolving demands of users and regulators.”
Binance is planning a new round of layoffs as it also faces heightened regulatory scrutiny. The exchange’s Chief Communications Officer, Patrick Hillmann, stated that the layoffs in June and internal reallocation of resources are necessary as the scrutiny persists. He continued:
“Regulators in almost every major market are also working overtime to provide greater clarity for their expectations of the industry and the asset class more broadly, which is putting even more pressure on orgs to adapt or fall by the wayside.”
According to Hillman, Binance regularly performs a talent density audit and resource allocation exercise about every six months. He referred to the activity as a “cyclical process.”