Binance announces new layoffs in response to increased regulatory scrutiny

Binance’s Chief Strategy Officer Patrick Hillmann hinted at the reorganization of resources on Twitter. The move is intended to respond to the growing regulatory pressures aimed at the crypto space.

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Binance is reportedly planning a 20% reduction in its staff. These job cuts follow the company’s announcement earlier this year that it would not be laying off any employees.

According to the exchange the decision was not a downsizing, but rather a reallocation of resources. As we prepare for the upcoming bull cycle, we have realized that we must focus on the talent density throughout the organization in order to remain agile and dynamic.

Patrick Hillmann , Binance’s chief strategy officer, hinted on Twitter that the reorganization was meant to address the growing regulatory pressures targeted at the crypto space.

“Regulators are working overtime in almost all major markets to clarify their expectations for the industry and asset class, which puts even more pressure on organizations to adapt or else fall by the side.”

Hillmann also said that a number of layoffs had yet to be determined. He continued, “Like in previous exercises, we will do this after several teams, including HR, Risk and Operations, have completed the talent density audit.”

Binance’s career page currently shows 326 positions across several departments and locations. Binance’s staff grew from 3,000 to 8,000 during the last bull market. They are located in Europe, Americas, Middle East, Africa, and Asia.

Binance’s spokesperson told Cointelegraph in March that the company is actively recruiting for over 500 positions with the aim of filling them up by the end H1 […]. We do not plan any layoffs. Moreover, Binance CEO Changpeng Zhao stated in January that the firm planned to hire heavily in 2023 and increase its headcount by between 15% and 30%.

The crypto community reacted quickly to the news and brought back Zhao’s tweets on the layoffs of crypto exchanges.


Screenshot: Changpeng Zhao, CEO of Binance, warns users on Twitter on Nov. 30, 2022.

Binance is facing a regulatory environment that has never been seen before. After the closure of Silvergate Bank and Signature Bank, the U.S. branch of the crypto exchange struggled to find a bank partner that would act as an on-ramp to fiat and a off-ramp to fiat for its clients.

In order to maintain its global status, the exchange has acquired locally regulated companies, including recent deals in Singapore and Thailand.




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