Binance CEO Changpeng Zhao (CZ) played down the significance of recent company layoffs – saying, “Another day, another FUD.”
Layoff rumored to be bear market driven.
On May 31, Colin Wu of the Wu Blockchain Twitter account stated multiple sources had confirmed Binance was planning to lay off staff. Although details on the cuts were “still uncertain,” rumors put the figure down to a 20% cull in numbers.
“The total number of Binance employees is about 8,000, market rumors that the proportion of layoffs in June was about 20%. As of press time, Binance has not responded to this.“
Wu added that the layoffs might be due to current market conditions and previous overhiring. But some Binance departments are continuing to recruit.
Later, he included a Binance response cited by The Block. It spoke of periodic staff evaluations resulting in cuts when performance expectations are unmet or if there is a mismatch with the company culture.
Binance remains profitable.
Rejecting the undertone of the layoffs, CZ said the company operates a “bottom out” program to assess staff fit. Echoing The Block citation, he commented that this inevitably leads to letting staff go – adding that, in many cases, it is not down to the individual’s competence.
“We constantly say goodbye to people who are not strong fits with the company. Many of them are great people or high performers, but may not fit our unique culture/situation. Small example, WFH is not for everyone.“
CZ added that this is a continual program covering multiple aspects of the business, including general cost-cutting, hardware, and travel expenses. He said this push for leaner operations is why Binance has been profitable since month four.
“From Oct 2017 onwards, through 2 crypto winters, Binance maintained profitability on a daily, weekly and monthly basis.“
Signing off, CZ said Binance is always looking for talented people, and we are still hiring.
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