Binance Plans Layoffs in June amid Growing Regulatory Scrunity

After noting earlier this year that it would not dismiss its employees, Binance is executing a new round of layoffs in June. This follows a massive downsize in the crypto space in January when it assured increasing its headcount by 15% to 30% in 2023.  A couple of months after, the company added in March that it was not planning to discharge its workers.

Recently, Wu Blockchain confirmed in a tweet that the June layoffs have started, and the rumor is that about 20% of the 8,000 workers would be affected. Additionally, the tweet revealed that the victims would receive compensations which would be based on different situations in different jurisdictions. Despite the planned layoffs for June, some departments within Binance are still recruiting more talent. Notably, the company is currently experiencing a shrinking market share.

Binance Announces June Layoffs amid Scrutiny

According to Binance, the June layoffs plan is not a case of rightsizing and strong new user registration remains intact. The crypto exchange emphasized seeking talents to take up hundreds of vacant roles. There are currently 326 job openings on its career page.

Instead of downsizing, Binance is rather reallocating resources. A spokesperson noted that the company performs periodic reviews to know how to allocate its talent to the best teams with the appropriate resources. Hence, this process results in letting of some members of the staff who may not be performing well.

“This is not a case of rightsizing, but rather, reevaluating whether we have the right talent and expertise in critical roles, and therefore we will be seeking to fill hundreds of open roles. This will include looking at certain products and business units to ensure our resources are allocated properly to reflect the evolving demands of users and regulators.”

Binance is planning a new round of layoffs as it also faces heightened regulatory scrutiny. The exchange’s Chief Communications Officer Patrick Hillmann said that the layoffs in June and internal reallocation of resources are necessary as the scrutiny persists. He continued:

“Regulators in almost every major market are also working overtime to provide greater clarity for their expectations of the industry and the asset class more broadly, which is putting even more pressure on orgs to adapt or fall by the wayside.”

According to Hillman, Binance has regularly performed a talent density audit and resource allocation exercise about every 6 months since he joined the company. He referred to the activity as a “cyclical process”.