Binance CEO Changpeng Zhao (CZ) responded on Twitter to rumors of layoffs at the world's largest cryptocurrency exchange by volume.
Binance CEO Announces They Regularly Fired People Who Don't Fit With The Company
Zhao said that Binance has a "bottom-up" program that regularly evaluates the performance and compliance of its employees, and that the company is still recruiting for hundreds of open positions.
CZ's announcement came after a tweet from Wu Blockchain, an independent journalist, claimed that Binance could lay off 20% of its 8,000 employees in June. Wu cited multiple sources confirming the dismissals, but did not provide any proof or name.
CZ dismissed the tweet, describing it as "a new day, a new FUD" (fear, uncertainty and doubt), explaining that Binance's "bottom-up" program is not a case of shrinkage, but focused on whether they have the "right capabilities".
He said he strives for cost reduction and performance management on a weekly basis, and that some people may not fit in with Binance's unique culture or conditions.
He also claimed that Binance has been making profits since the fourth month of its founding in 2017 and has remained profitable through two crypto winters. He added that Binance is always trying to increase its talent capacity.
Binance has faced several challenges in recent months, including regulatory scrutiny from various countries, lawsuits from competitors and customers, and a protracted bear market that has eroded its market share.
However, CZ said that Binance continues to focus on specific products and business units to ensure its resources are appropriately allocated to reflect the changing demands of users and regulators.
*Not investment advice.