Binance Confirms Layoffs As Part Of Periodic “Reevaluating” Process

The world’s largest crypto exchange Binance started layoffs as part of the periodic review of critical positions. Although the exact extent remains uncertain, the exchange reportedly plans to layoff around 20 percent of its workforce in June. The downsizing could be related to the closure of Canada operations and partners in other locations recently.

Popular crypto reporter Wu Blockchain shared the news, reporting that multiple sources confirmed upcoming layoffs at Binance.

Binance to Start Mass Layoffs

Binance currently has nearly 8000 employees and the rumors suggest that the proportion of layoffs in June could be about 20%. The layoffs are related to a shrinking market share amid market uncertainty and regulatory challenges.

“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 still be seeking to fill hundreds of open roles, said a Binance spokesperson. “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.”

According to sources familiar with the matter, the compensation plan is being formulated as per different conditions and places. Meanwhile, some departments in Binance will continue to hire.

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

Binance CEO recently completed a Twitter AMA session, but didn’t reveal any plans of layoffs. He discussed topics including Lightning Network, bitcoin mining plan, regulatory challenges in the U.S. and India, meme coins, and growing crypto adoption and favorable regulations in Hong Kong and the UAE.

Also Read: Binance CEO “CZ” Discusses UAE Plans, Bitcoin Mining, Meme Coins In AMA

Traders didn’t immediately respond to the latest layoffs at Binance. Crypto prices extend earlier fall during the Asia hours, with Bitcoin and Ethereum prices tumbling below $27,000 and $1,850, respectively.

However, the crypto market can crash if the news comes out to be really about mass layoffs. The uncertainty in the market is already higher and macro factors impacting the market extensively. Binance has lost its market share to other crypto exchanges due to regulatory challenges.

Also Read: Crypto Market Selloff: Here’s Why Bitcoin, Ethereum Price Falling Today

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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