Binance Frames Reported Layoffs as Focus on ‘Talent Density’
Crypto exchange re-evaluating whether it has the right talent in top roles, but looks to continue hiring, according to spokesperson
ymcgraphic/Shutterstock modified by Blockworks
Following reports of a wave of layoffs, Binance told Blockworks that it is taking a close look at its staff in top roles and examining which products and business segments to put the most resources behind.
And a spokesperson told Blockworks in an email that the exchange intends to continue hiring.
“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 company representative added. “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.”
The alleged layoffs were first reported by blockchain analyst Colin Wu, who suggested that as many as 20% of the 8,000 people at Binance were affected. A source at Binance recently confirmed to Blockworks that layoffs were happening as early as March of this year.
Binance had more than 300 job openings listed on its website on Wednesday.
The company’s workforce re-examination 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,” the spokesperson noted.
The representative did not immediately confirm or deny that the company has laid off staff members.
The re-evaluation comes after Binance CEO Changpeng Zhao said during Switzerland’s Crypto Finance Conference in January that the company had more than doubled its headcount in 2022 from 3,000 to nearly 8,000.
Zhao added that the crypto exchange intended to increase its staff by between 15% and 30% in 2023. A Binance spokesperson declined to comment at the time.
The CEO’s January comments came before and after announcements from other crypto companies that they were initiating or continuing layoffs amid tough market conditions.
Coinbase CEO Brian Armstrong, for example, said in a January blog post that the company would be letting go an additional 950 people after making staff cuts of 18% in June.
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