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Cryptocurrency exchange Binance is set to face another staff cut, which is reportedly planning to lay off 20% of its workforce in June. The job cuts came after the company said earlier this year it would not lay off employees.
According to the exchange, this decision is not about reducing, but about redistributing resources. “As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density in the organization in order for us to remain agile and dynamic,” a Cointelegraph spokesperson said.
On Twitter, Binance’s Chief Strategy Officer Patrick Hillmann hinted that the reorganization is intended to address the growing regulatory pressure placed on the cryptocurrency space:
“Regulators in almost every major market are also working overtime to clarify their expectations for the industry and the asset class as a whole, putting even more pressure on organizations to adapt or step aside.”
In addition, according to Hillmann, the exact number of layoffs has not yet been determined. “As with previous exercises, this will be done after multiple teams (including HR, Risk and Operations) have completed their frame density audit,” he continued.
At the time of writing, there are 326 open positions on the Binance career page, spanning multiple departments and locations. During the most recent bull market, Binance’s headcount grew from around 3,000 to nearly 8,000, with employees located in Europe, the Americas, the Middle East, Africa, and Asia.
In March, a Binance spokesperson told Cointelegraph that the company was aiming to fill over 500 positions by the end of June. […] We are not planning any layoffs. Moreover, in January, Binance CEO Changpeng Zhao stated that the firm plans to hire new employees in 2023, increasing headcount by 15-30%.
Members of the cryptocurrency community quickly reacted to the news, resurrecting Zhao’s previous tweets about layoffs on cryptocurrency exchanges.
Binance is facing an unprecedented regulatory landscape. The US arm of the cryptocurrency exchange has reportedly struggled to find a new partner bank to serve as a fiat entry and exit for customers following the closure of Silvergate and Signature Bank.
To maintain its global status in this environment, the exchange has acquired locally regulated entities, including most recently deals in Singapore, Thailand and Japan.