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Binance Lay-offs Not a Cost-Cutting Measure - CZ Dismisses Rumors

by BSC News

May 31, 2023

chain

CZ emphasized the company's commitment to talent and profitability, as Binance aims to continue to attract and retain top talent while streamlining its resources.

Binance Fights Back FUD

In response to Wu Blockchain’s Twitter Thread about layoffs at Binance, CEO Changpeng Zhao (CZ), has taken to Twitter to address the situation and refute the claims. CZ labeled the rumors as FUD (Fear, Uncertainty, and Doubt) and highlighted the company's unwavering commitment to talent and profitability.

According to Wu Blockchain, the total number of Binance employees stands at approximately 8,000, with market speculations suggesting that the company might undergo layoffs next month, with an estimated reduction of around 20%. 

CZ clarified that Binance follows a continuous "bottom-out" program, which involves regularly bidding farewell to individuals who may not align with the company's unique culture or situation.

“Many of them are great people or high performers, but may not fit our unique culture/situation.” he said. “This ‘program’ is constant. I push for it on a weekly basis. There are no % of people we have to "push out". 

Furthermore, CZ emphasized his dedication to cost-cutting measures, such as optimizing expenses related to servers, flights, and meals, among others. This commitment to efficiency has played a crucial role in Binance's success, enabling the company to maintain profitability since its fourth month of operation in October 2017, even during challenging periods in the cryptocurrency industry.

Chief Communications Officer at Binance, Patrick Hillmann, supported CZ's statements in an earlier response to Wu Blockchain, shedding light on the dynamic nature of the crypto industry and the need for organizations to remain disciplined and adaptive. He emphasized the importance of reallocating resources internally and maintaining a pipeline of innovative candidates to meet the rapidly changing demands of users and the regulatory landscape.

“Since joining Binance, we have regularly gone through a talent density audit and resource allocation exercise every six months or so. This is a cyclical process”, said Hillmann. 

Binance will continue to attract and retain top talent while actively streamlining its resources to remain at the forefront of the market.

What is Binance:

Binance is the world's leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more.

Where to find Binance:

Website | Twitter | Discord | Telegram |

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