Binance Said Layoffs are not “a cost-cutting measure”
Binance is often the subject of debate. The estimated 20% workforce reduction at the company has made news.
Cryptocurrency markets are not immune to the normal market sentiments of fear and uncertainty. Binance, the biggest cryptocurrency exchange, is routinely singled out as the target of such concerns.
Concerns about the company’s viability have been renewed when rumours surfaced that it wants to lay off around 20% of its workers. Binance’s claims that it would not lay off employees or halt expansion during the bear market seem to be at odds with the news reports.
While the company has not explicitly rejected layoff intentions, Binance has strongly refuted the premise that the layoffs are cost-cutting measures.
At the outset of a long Twitter discussion on May 31st, Binance’s Chief Communication Officer Patrick Hillman said emphatically that the exchange will not be laying off 20% of its workers in an effort to save money.
According to Hillman, the regularity of layoffs is due to a “talent density audit and resource allocation exercise” that takes place every six months. Hillman argues that maintaining a “healthy pipeline of hungry, innovative candidates” is essential for the organisation to remain “disciplined and dynamic” in the ever-changing crypto industry.
Following the conclusion of this talent density examination, the Binance representative revealed that the company will be conducting the current round of layoffs (but refused to use that term).
There’s no hard and fast tally, simply suggestions for where we might cut down. Hillman said that this was “honestly part of Binance’s secret sauce.”
So maybe this is why… Since our fourth month of operation, Binance has consistently turned a profit. Zhao claims that Binance has been profitable every day, week, and month since October 2017, through two crypto winters. According to the company’s careers portal, 314 different positions are available at Binance.