Bybit Announces New Job Cut 5 Months after Workforce Trim

<p class="MsoNormal text-align-justify">Bybit, a cryptocurrency exchange founded in 2018, has announced plans to carry out a new round of job cuts across its organization. ByBit's CEO and Co-Founder, Ben Zhou announced on Sunday on Twitter that the move is part of the company’s reorganization plan to “refocus our efforts for the deepening bear market.” </p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">1) Difficult decision made today, but tough times demand tough decisions. I have just announced plans to reduce our workforce as part of an ongoing re-organisation of the business as we move to refocus our efforts for the deepening bear market.</p>— Ben Zhou (@benbybit) <a href="https://twitter.com/benbybit/status/1599275418502459392?ref_src=twsrc%5Etfw">December 4, 2022</a></blockquote><p class="MsoNormal text-align-justify">The announcement comes five months after the cryptocurrency exchange announced plans to fire about 30% of its staff. A Bybit spokesperson told CoinDesk the goal was to “remove overlapping functions and build smaller but more agile teams." </p><p class="MsoNormal text-align-justify">In addition, the planned action will see about 30% of the company’s workers lose their jobs, according to confirmed reports. This is even as Bybit <a href="https://www.financemagnates.com/cryptocurrency/bybit-supports-crypto-market-makers-with-100m-fund/">launched a $100 million support fund</a> last week for institutional clients in the crypto industry in the wake of <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/">FTX’s collapse</a>.</p><p class="MsoNormal">On top of that, Bybit recently <a href="https://www.financemagnates.com/cryptocurrency/bybit-gets-in-principle-approval-to-conduct-business-in-uae/">moved its headquarters</a> from Singapore to the United Arab Emirates, stating in order “to have a domiciled presence that does not affect our global standing.”</p><p class="MsoNormal text-align-justify">Market Slowdown</p><p class="MsoNormal">Explaining the new planned job cut, Zhou noted that it remains important for the company to have “the right structure and resources in place to navigate the market slowdown.” The executive added that Bybit needs to be “nimble enough to seize the many opportunities ahead.” </p><p class="MsoNormal">“The planned downsizing will be across the board. We are all saddened by the fact that this reorganization will impact many of our dear Bybuddies and some of our oldest friends. I am very grateful for all of their contributions to Bybit over the years, and we will not forget them,” Zhou further commented. </p><p class="MsoNormal">Other Recent Retrenchment Actions </p><p class="MsoNormal">Meanwhile, Bybit’s announcement less than one week after Kraken, one of the longest-running cryptocurrency exchanges in the industry, <a href="https://www.financemagnates.com/cryptocurrency/crypto-exchange-kraken-cuts-global-workforce-by-30/">pruned its global team by 30%</a>, firing approximately 1,100 people “in order to adapt to current market conditions.” </p><p class="MsoNormal">In recent months, other exchanges such as <a href="https://www.financemagnates.com/cryptocurrency/crypto-winter-gemini-sheds-off-10-of-workforce-in-first-job-cut/" target="_blank" rel="follow">Gemini</a>, <a href="https://www.financemagnates.com/cryptocurrency/we-grew-too-quickly-coinbase-downsizes-amidst-economic-downturn/" target="_blank" rel="follow">Coinbase</a>, Crypto.com, and now-bankrupt BlockFi all reduced their employee headcounts. In contrast, Binance months ago said it <a href="https://www.financemagnates.com/cryptocurrency/amidst-mass-layoffs-binance-announces-2000-open-job-positions/" target="_blank" rel="follow">was hiring for new roles</a>. KuCoin, a Seychelles-based crypto exchange, also clarified that it had no plans to make any significant changes to its hiring plan for 2022.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Crypto Exchange Kraken Cuts Global Workforce by 30%

<p>Kraken, one of the longest running cryptocurrency exchanges, has shed its global workforce by 30%, firing approximately 1,100 people “in order to adapt to current market conditions.”</p><p>The action, which the United States-based crypto exchange <a href="https://blog.kraken.com/post/16442/business-update/">announced</a> on Wednesday, comes at a time when some crypto firms based in the country are undergoing bankruptcy proceedings. These include Chicago-based <a href="https://www.financemagnates.com/cryptocurrency/troubled-ftx-files-for-bankruptcy-as-ceo-bankman-fried-resigns/">FTX.US</a>, the US subsidiary of <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">beleaguered FTX</a>; and New Jersey-based crypto lenders <a href="https://www.financemagnates.com/cryptocurrency/crypto-lender-blockfi-files-for-bankrupty-protection-in-the-us/">BlockFi</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/crypto-lender-celsius-files-for-bankruptcy-in-new-york/">Celsius Network</a>.</p><p> However, Kraken attributed the move to “negative influences on the financial markets.” The exchange explained that it had tripled its workforce during the crypto market boom of the past years. However, with <a href="https://www.financemagnates.com/cryptocurrency/why-has-bitcoin-surged-and-crashed-over-the-last-two-years/" target="_blank" rel="follow">the market downturn</a> in recent times, it had no other “preferable options” to bring down its operational cost.</p><p>“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups. We responded by slowing hiring efforts and avoiding large marketing commitments,” Jesse Powell, Kraken’s Co-Fouder and CEO explained in the statement.</p><p>Powell further noted that the action, which returns the exchange’s workforce back to its size only 12 months ago, will enable the exchange to “to sustain the business for the long-term.” It will also enable Kraken to continue “to build world-class products and services in selective areas that add the most value for our clients.”</p><p>Recent Mass Layoffs</p><p>Kraken's action is a continuation of the mass retrenchment in the crypto industry that started some months ago. The crypto firms that laid off significant portions of their teams all cited rising market volatility. </p><p>In June, New York-based <a href="https://www.financemagnates.com/cryptocurrency/crypto-winter-gemini-sheds-off-10-of-workforce-in-first-job-cut/">Gemini</a> cut its workforce by 10%, <a href="https://www.financemagnates.com/cryptocurrency/we-grew-too-quickly-coinbase-downsizes-amidst-economic-downturn/">Coinbase</a> by 18%, and now-bankrupt BlockFi by 20%. Crypto.com, a Singapore-based crypto exchange, also pruned its by 5% or 260 workers. </p><p>On the contrary, however, leading crypto exchange <a href="https://www.financemagnates.com/cryptocurrency/amidst-mass-layoffs-binance-announces-2000-open-job-positions/">Binance announced</a> months ago that it was undergoing talent recruitment for 2,000 open job positions. Seychelles-based crypto exchange KuCoin also previously clarified that it had no plans to make any significant changes to its hiring plan for this year.</p><p>In <a href="https://www.financemagnates.com/cryptocurrency/crypto-winter-whats-with-all-the-mass-layoffs/">a recent interview</a> with Finance Magnates, Dr Christopher Smithmyer, an Adjunct Professor at Doane University, a private university in Nebraska, blamed the crypto exchanges for not saving for rainy days. Smithmyer, who is the author of the Dragons of the Digital Age, also believes that a crypto winter is a good way to test the crypto market to tease out poor and weak performers.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Binance Fired over 1,000 Employees in Recent Weeks: Report

Binance reportedly sacked over 1,000 employees in recent weeks, further shrinking its previous 8,000-strong global workforce. The Wall Street Journal (WSJ) reported the mass retrenchment today (Friday), citing an insider source.

Binance Cuts More Jobs Globally

Former employees told WSJ that more staff members across the exchange’s global markets were fired during this week, with customer-service workers mostly affected. In India alone, about 40 employees in this category were let go, the outlet said.

The downsizing comes as regulatory pressure continues to mount on the exchange, which recently endured an exodus of senior executives. Already, about 50 employees working for the exchange’s so-called independent US subsidiary have been booted out.

However, earlier this month, Changpeng ‘CZ’ Zhao, the CEO of Binance, while reacting to the departure of Patrick Hillmann, the ex-Chief Strategy Officer and other key executives, dismissed speculations of troubles at the exchange, noting that “there is turnover at every company.”

4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…

Before then, Hillman in May rebuffed reports that Binance was pruning its workforce by 20% as a ‘cost-cutting measure,’ suggesting that the exchange was simply going through its regular ‘talent density audit and resource allocation’ exercise.

Let me provide some additional clarity via ??. Binance is not cutting 20% of employees as a cost-cutting measure. @binance experienced true exponential growth these past 5 years — and grew its staff accordingly. This was a historic operational challenge to overcome. https://t.co/Awmh8PdT8j

Binance in the Eyes of the Storm

Currently, Binance is defending against charges filed by the US Securities and Exchange Commission (SEC) in early June. The regulator alleges that the exchange ran unregistered trading platforms and misused customers’ funds. The exchange is also worried about possible charges from the US Department of Justice, WSJ reported.

In the last one month, Binance has suffered several setbacks: it was forced out of Belgium, denied a license in the Netherlands and Germany, and lost its euro banking partner. Additionally, the exchange is under probe in France, with a lawmaker pushing for a congressional investigation into the firm’s representative in Brazil.

However, despite these challenges, Binance recently launched in Kazakhstan, marking its first presence in the Central Asia sub-region.

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