Binance CZ: Report on job cuts is FUD

1 year ago 77

Binance Hiring System

Major crypto asset (virtual currency) exchange Binance has reportedly laid off its employees.

There are reports that the company has cut its workforce by 20%, but Changpong Zhao (CZ), CEO of the company, insisted that “reports about layoffs are a bad rumor (FUD).” On top of that, CZ now explains Binance hiring.

Regarding the dismissal of Binance, Colin Wu of “Wu Blockchain” first reported on May 31 that “Binance has started dismissal,” citing multiple sources. Binance, which has about 8,000 employees, said it will lay off 20% in June.

SCOOP: According to multiple sources who confirmed to WuBlockchain, Binance has started layoffs, and the proportion is still uncertain.

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,…

— Wu Blockchain (@WuBlockchain) May 31, 2023

In response to this report, “The Block” interviewed Binance. A Binance representative said, “We regularly review whether we have the right resources and optimal staffing, and this review will inevitably identify employees who are underperforming or who are not aligned with Binance’s culture. It will lead to the dismissal of the employee,” he said.

“This is not about right-sizing, it’s about staffing. Binance currently has hundreds of job openings,” he said.

Data from The Block shows that Binance’s market share has been declining since a while due to factors such as the U.S. Commodity Futures Trading Commission (CFTC) lawsuit. Below is a graph of share based on monthly trading volume. CZ said in January that he wanted to increase the workforce by 15% to 30% in 2023 before the next bull market.

connection: What is Binance, the world’s largest virtual currency exchange?

Mr. CZ’s explanation

CZ’s explanation is largely in line with what Binance representatives have told him. “We constantly end contracts with people who don’t fit in with the company’s culture or whatever,” CZ said.

“We’re doing this on a weekly basis, and there’s no rule about what percentage of people we have to cut,” he said.

He argued that these measures have kept Binance profitable since its fourth month of existence. So far, there have been two winter times for cryptocurrencies, but he explained that he has maintained profits on a daily, weekly and monthly basis.

Finally, CZ said, “Binance is always looking to enrich its talent pool and is still hiring.”

4. Another day, another FUD. On rumors of layoffs.

Binance has a “bottom out” (we should probably rename it to something else) program. 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… https ://t.co/YGnZILzd5C

— CZ Binance (@cz_binance) May 31, 2023

What is Binance

Operates a major virtual currency exchange with a large number of traded stocks, trading volume, and registered users. In addition, we are developing a wide range of businesses such as the activities of the venture capital department, the provision of educational content, and philanthropic activities. In November 2010, the company announced its entry into the Japanese market.

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