In a surprising turn of events, rumors have circulated on Twitter today suggesting that the world’s leading cryptocurrency exchange, Binance, is undergoing a wave of significant layoffs. Although the exact number of employees affected remains uncertain, several sources, including the reputable news outlet @WuBlockchain, have confirmed the reports.
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
At present, Binance employs approximately 8,000 individuals. According to insiders, the expected workforce reduction in June is estimated to be around 20%, which would translate to approximately 1,600 Binance employees losing their jobs. As of now, Binance has not provided an official response to these allegations. However, it is worth noting that some departments within the company are still actively recruiting new employees.
The decision to downsize the workforce could potentially be attributed to the prolonged downtrend in the cryptocurrency market and the company’s aggressive expansion strategies in the past. While other industry players have been implementing employee cutbacks due to market conditions, Binance had been actively promoting recruitment efforts, with a target of reaching at least 8,000 employees by the end of the year.
Interestingly, during a previous period, Binance’s CEO, known as CZ, cautioned the community to exercise caution with platforms offering excessively high annual percentage yields (APY) or faced the need for downsizing. Shortly after making these statements, CZ swiftly deleted the tweets in question.
During the same timeframe, another prominent exchange, Kraken, announced a 30% reduction in its workforce, amounting to approximately 1,100 employees, as a measure to adapt to market conditions. Jesse Powell, Kraken’s CEO, previously stated his intention to step down from his position.
Furthermore, Coinbase, another major player in the cryptocurrency space, had announced the termination of 60 employees in November. Just five months earlier, Coinbase had laid off 1,100 employees, accounting for 18% of its total workforce. CEO Brian Armstrong acknowledged that the company had grown too rapidly and needed to readjust to the challenging economic landscape.
At the time of writing this article, neither Binance nor its founder CZ have issued a formal response regarding the circulating information about the alleged layoffs. The cryptocurrency community awaits official confirmation or denial of these reports, as they could have significant implications for both the company and the wider industry.
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