Binance reportedly cutting jobs despite profit claims and hiring promise

Binance has started scaling back its workforce despite claiming that layoffs weren’t on the cards in March. This is according to a tweet from crypto journalist Colin Wu who reports that “multiple sources” have confirmed the news.

According to Wu, the number of jobs set to go is still not certain but if it’s in keeping with other prominent exchanges and companies that have made cuts this year, it could be a significant number.

Indeed, since the turn of the year, the likes of Crypto.com, Polygon Labs, Gemini, Dapper Labs, Coinbase, and Huobi have all announced plans to cut between 10% and 20% of their staff. This is on the back of already-significant job losses during 2022.

Read more: Crypto exchange Luno abandons Singapore months after staff cuts

Many of these losses were attributed to an across-the-board dip in crypto markets and the ongoing fallout from the collapse of Sam Bankman-Fried’s FTX.

Binance is currently thought to employ somewhere in the region of 8,000 people. According to Wu, a compensation plan is being formulated for those affected, however, “some departments are still continuing to recruit.” He also speculates that the layoffs may be related to the poor overall market and the company’s previous ambitious expansion.

Binance promised 500 new jobs by June

Earlier this year, Binance told Cointelegraph that, far from planning mass layoffs like much of the crypto industry, it was set to embark on a hiring spree that would see it onboard up to 500 new faces by the end of June.

In March, a Binance spokesperson said that the company “has hired more than 600 people since the start of 2023.”

Binance has consistently claimed to be a profitable company, but it’s under no obligation to present profits. Bloomberg estimated Binance’s revenues to be $12 billion as of April 5 — however, CZ denied its projections on Twitter.

It was also reported this week that the company is “bleeding user deposits,” and has seen customers withdraw $1.8 billion worth of crypto from the platform in the past month. This adds up to more than 3% of its total deposits.

Protos has contacted Binance for further information and will update if we receive a reply.

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