CZ Admits to Involuntary Terminations Within Binance But Disagrees With Reported Numbers

Several traditional media outlets reported recently that Binance, the world’s largest crypto exchange, has or will have to dismiss thousands of employees in the wake of its legal battle with US regulators.

The company’s CEO confirmed the layoffs but disagreed with the “FUD” reported numbers of terminated staff members.

CNBC, WSJ Reports

Citing a person familiar with the matter, the Wall Street Journal claimed on Friday that Binance had already dismissed over 1,000 people as it prepares for a lengthy and costly legal fight with US regulators.

Former company workers asserted that more layoffs will follow in the upcoming weeks, with the customer support team being hit the hardest.

“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of rightsizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles,” – commented a Binance spokesperson.

CNBC took it a step further, indicating that the overall cut-offs within the exchange could reach 3,000, which is almost half of the firm’s reported employees.

The media outlet’s source noted that the DOJ battle could change Binance “fundamentally,” as if the firm decides to settle, it could cost it billions of dollars.

CZ Confirms But Not Everything

Changpeng Zhao, CEO of Binance, started this year with a message for all of his followers that they should learn to ignore much of the FUD coming from traditional media outlets. In the next seven months or so, he had to use that phrase quite a lot.

When it came down to the layoff reports, CZ actually confirmed that his company had to undertake such actions, which he referred to as “involuntary terminations.” However, he said Binance is doing so as it strives for “talent density.”

Additionally, CZ strongly disagreed with the aforementioned number of laid-off employees.

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 🔶 Binance (@cz_binance) July 14, 2023