New round of layoffs at bitcoin exchange Binance is not what you think

On May 31, Wu Blockchain sent a tweet into the world stating that Binance, the world’s largest crypto exchange, had reportedly initiated a new round of layoffs. Multiple sources would have confirmed to him that 20% of the total workforce could pack their bags. He added that the layoffs may be due to current market conditions and the fact that the crypto exchange previously hired too many employees.

The story turned out to be the umpteenth time that Changpeng Zhao (CZ), the CEO of Binance, decided to comment with his famous ‘4’. This refers to one earlier tweet from January 2 of CZ in which he listed his goals for this year. At number 4 was the intention to FUD (Fear, Uncertainty and Doubt) to ignore.

Binance fires, CZ responds

CZ indicated in his tweet that the superpower within the crypto industry has a so-called bottom out program to assess staff suitability:

“We are constantly saying goodbye to people who don’t fit in well with the company. Many of them are great people or high performers, but may not fit our unique culture/situation.”

CZ says this is an ongoing program that also extends to other aspects of the business such as cost savings, servers, flights and meals. He adds that this program may be why the exchange has proven profitable on a daily, weekly and monthly basis since its fourth month of inception (as of October 2017).

CZ ends his tweet by saying they are still looking for talented people to hire.

Increasing regulatory pressure on crypto industry

The chief strategic officer from Binance, Patrick Hillmann, also left hear from themselves after the news of the round of layoffs came out. He hinted that the reorganization is also intended to address the increasing pressure on the crypto world:

Regulators in nearly every major market are also working overtime to provide more clarity on their expectations for the industry and the broader asset class, putting further pressure on organizations to adapt or fall by the wayside.

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