​Binance denies rumors of mass layoffs

What’s new? Binance chief strategy officer Patrick Hillmann has denied information that appeared in the media about the crypto exchange preparing to lay off 20% of its staff in order to reduce costs. In this, he said that Binance conducts an audit of staff efficiency every six months, based on the results of which it can decide on the reallocation of resources and cuts, without being guided by a specific number.

Let me provide some additional clarity via 🧵. Binance is not cutting 20% of employees as a cost-cutting measure. @binance experienced true exponential growth these past 5 years — and grew its staff accordingly. This was a historic operational challenge to overcome. https://t.co/Awmh8PdT8j — Patrick Hillmann (@PRHillmann) May 31, 2023

Details about the situation. On May 31, analyst Colin Wu, citing sources, reported that Binance began making large-scale layoffs at its branches around the world amid a falling market and previous over-expansion of staff. The company currently employs about 8000 people.

Commenting on Wu’s information, Hillman noted that the company experienced exponential growth over the past five years and consequently increased the number of employees, “This was a historic operational challenge to overcome.”

He also noted the high momentum and explosive growth of the crypto industry, which requires competing companies to be disciplined and reallocate internal resources in a timely manner. The senior executive stressed that since joining Binance, employees have been audited regularly, and every few months there is a cyclical process of reallocating human resources.

“When we do have to part ways with an employee, they immediately become a high-value target for recruiters across the globe,” Hillman added.

In early March, Binance officials told the media that the company had no plans to conduct “any layoffs,” but instead intended to hire more than 500 employees in various positions by the end of June. Last June, amid a general decline in the crypto market and massive layoffs at other companies, the exchange also opened 2000 jobs.

Late last year, Colin Wu reported mass layoffs at crypto exchange Huobi, which was later confirmed by its head Justin Sun.