Binance CEO Changpeng Zhao on Layoffs Rumors: ‘Another Day, Another FUD’

Changpeng “CZ” Zhao has answered the rumors of mass layoffs at Binance, with reports stating that up to 20% of the current workforce of the exchange might be forced to abandon their positions due to poor market conditions. Zhao declared this was another attempt at spreading FUD on Binance, explaining that the company has a constant “bottom-out policy.”

Changpeng Zhao Calls Layoff Reports ‘FUD’

Changpeng Zhao, CEO of Binance, has answered the rumors about mass layoffs on the exchange. According to Colin Wu, a Chinese cryptocurrency reporter, Binance had plans for laying off a significant part of its workforce, stating that market rumors indicated that at least 20% of the 8,000 employees on Binance could be involved in these layoffs due to poor overall market conditions.

Wu explained employees would be compensated on a case-by-case basis, depending on their situation and place in the company.

Through social networks, Zhao informed that layoffs in Binance were nothing new, clarifying that the exchange had a “bottom out” policy that laid off employees qualified as “not strong fits” for the company. He referred to these rumors as “FUD.”

Zhao further expanded on this topic, stating:

Many of them are great people or high performers, but may not fit our unique culture/situation. Small example, WFH [work from home] is not for everyone.

Zhao remarked the layoffs program was constant in the company, happening every week and not having any number restrictions attached to it.

Binance Maintains Profitability, Keeps Hiring

Binance is one of the largest exchanges by trading volumes in the cryptocurrency market, hosting more than 92% of the Bitcoin spot trading by the end of 2022.

Zhao detailed the different ways in which Binance has dealt with market conditions before, stating:

I also push for cost cutting, servers, flights, meals, etc, every week too. This may be why … Binance has stay profitable since month 4 of our inception. From Oct 2017 onwards, through 2 crypto winters, Binance maintained profitability on a daily, weekly and monthly basis.

Zhao also remarked that Binance keeps hiring. The Binance careers portal, which indicates the job openings at the company, has more than 300 positions open in different areas of work.

Last year, in the middle of the so-called crypto winter, Zhao announced that the exchange was hiring for 2,000 roles, while other crypto companies like Coinbase and Kraken were involved in thousands of layoffs.

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