Binance CEO Confirms Layoffs, Refutes Exaggerated Figures

Binance CEO Changpeng Zhao (CZ) has confirmed that his exchange is laying off people, but said numbers reported in the media are “way off.”

“As we continuously strive to increase talent density, there are involuntary terminations,” CZ wrote in a tweet this weekend, while adding “This happens in every company.”

The tweet from the Binance boss came after a Wall Street Journal report on Friday said the exchange was laying off “over 1,000 employees,” with a possibility of eventually letting go of as much as one-third of its workforce.

Binance employed around 8,000 people before the latest round of layoffs, according to the WSJ report.

In his tweet, CZ said that the number of workers being laid off that was reported in the media was “way off,” and called the reporting “FUD,” short for ‘fear, uncertainty and doubt.’

“We are still hiring,” he added.

As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD.

On the bright side, they just can’t resist talking about us.

We are still hiring. 🤝

— CZ 🔶 BNB (@cz_binance) July 14, 2023

A surprise for the community

The report about the layoffs at Binance came as a surprise for much of the crypto community, given Binance’s reputation as one of the financially strongest players in the industry.

CZ has in the past repeatedly said that Binance uses bear markets as an opportunity to hire new staff and build products.

For instance, he pointed out during a speech at the Web Summit in Lisbon late last year that “it’s easier to hire talent in the bear market,” while adding “now it’s easy to hire people and grow.”

But despite those promises, it now seems clear that even Binance – perhaps the most deep-pocketed exchange in the industry – finally has been forced to follow its competitors and downsize in order to adjust to the new reality.

Binance celebrated its six-year anniversary on Friday, the same day the Wall Street Journal story broke.

“[…] we can’t wait for what lies ahead,” the exchange wrote on Twitter to mark the occasion.

Today we celebrate 6 years of #Binance!

Thank you for your extraordinary support over the last 6 years and we can't wait for what lies ahead.

Here's a message from @cz_binance to all of you for #BinanceTurns6. pic.twitter.com/Xkf8bVv5ou

— Binance (@binance) July 14, 2023