Not just crypto companies, global layoffs trend, Binance goes against the tide: aggressively hiring top talents during the bear market

Over the past two months, crypto companies have been initiating a wave of layoffs, with over 1,500 job cuts primarily from exchanges. Coinbase announced an 18% reduction in workforce. It is worth noting that this trend is not exclusive to the crypto industry, as large real estate and fintech companies are also downsizing. However, unlike other companies, the founder of Binance has stated that they will make the most of the bear market to recruit top talent.

Corporate Layoffs Wave

On 6/14, CNBC reported that real estate companies Redfin and Compass have each laid off 8% and 10% of their workforce respectively due to concerns over the rapid cooling of the real estate market following a period of frenzy.

In addition, commission-free brokerage platform Robinhood and buy-now-pay-later startup Klarna also laid off 9% and 10% of their employees respectively at the end of April.

As for the crypto industry, Coinbase, a benchmark exchange in the U.S., made a one-time announcement of an 18% workforce reduction, making the situation appear more dire.

Coinbase: Overexpansion Issues

CEO Brian Armstrong announced on 6/14 that Coinbase would be laying off approximately 1,100 employees, which accounts for 18% of its workforce. He cited the following reasons:

• Rapid expansion
• Swift economic downturn
• Cost control is crucial during market downturns

Following the announcement, employees affected by the layoffs would receive:

• Severance pay of at least 14 weeks, with an additional 2 weeks for each year of service beyond the first year.
• 4 months of COBRA health insurance and 4 months of mental health coverage.
• The Coinbase team would assist in accessing talent centers to seek job opportunities at other crypto companies.

Other companies that have conducted layoffs include:

• BitMEX: 25%, laying off around 75 employees.
• BlockFi: 20%, laying off about 150 employees.
• Gemini: 10%, laying off approximately 100 employees.
• Crypto.com: 5%, laying off around 260 employees.
• Latin American exchange Bitso: laying off 80 employees.
• Argentinian exchange Buenbit: 45%, laying off 80 employees.

Multiple Crypto Companies Extend Helping Hands

Following Brian Armstrong's layoff announcement, TRON founder Justin Sun, data analytics platform Dune Analytics, and Delphi Digital's Chief Operating Officer Anil Lulla all posted job openings.

Justin Sun stated that TRON DAO, exchange Poloniex, stablecoin USDD, and others under his umbrella needed to expand their workforce by 50%.

Delphi Digital expressed displeasure at the widespread downsizing in the crypto sector and emphasized that all its divisions were still hiring.

Dune Analytics also urged individuals to check their official Discord for job listings.

Binance founder Changpeng Zhao, in an interview with Fortune magazine, mentioned:

Binance has a very healthy emergency fund. In fact, we are expanding our hiring efforts. We have over 2,000 job openings in engineering, product, marketing, and business. The crypto space is still in its early days. Bull markets tend to focus more on prices, but if we are in a bear market now, we believe it is a good time to bring in top talent, and we will make good use of it. We will make the most of it.