Despite the company's previous assertions that no layoffs would take place, Binance is looking to reduce its workforce in June.
Binance, one of the world's leading cryptocurrency exchanges, reportedly plans to lay off 20% of its workforce.
When asked about the matter, Binance's spokesperson maintained that the change is focused not on downsizing but rather on an effort to reallocate resources. The spokesperson highlighted the need for a skillful and dynamic workforce in preparation for the next bull cycle.
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Chief Strategy Officer of Binance, Patrick Hillmann, took to Twitter to suggest that the reorganization was a strategic move to handle the increasing regulatory scrutiny within the cryptocurrency industry, stating:
Regulators in almost every major market are also working overtime to provide greater clarity for their expectations of the industry and the asset class more broadly, which is putting even more pressure on orgs to adapt or fall by the wayside.
Despite the impending layoffs, Binance's careers page lists over 300 job positions scattered across different departments and global locations.
In March, a spokesperson for Binance stated that the company intended to fill more than 500 roles by the end of June.
Earlier in January, Binance CEO Changpeng Zhao also shared the firm's plans for significant recruitment in 2023, with a planned increase of 15% to 30% in headcount.
The specific number of employees affected by this restructuring is yet to be confirmed.
Binance is currently grappling with an intensifying regulatory environment. At the end of March, the United States Commodity Futures Trading Commission (CFTC) filed a lawsuit against leading cryptocurrency exchange Binance and its CEO, Changpeng "CZ" Zhao.
In the face of evolving regulatory requirements, Binance is demonstrating adaptability through a strategic staff restructuring. As the crypto exchange navigates this changing landscape, it continues to show commitment to maintaining its place as a global leader in the cryptocurrency space.