Binance lays off 1,000 employees as part of its ongoing effort to reduce its personnel as the crypto giants face federal investigations and regulatory crackdowns in the United States, according to the Wall Street Journal.
Binance’s layoffs could result in the company losing one-third of its whole personnel. This might have a significant impact on the crypto giant’s company.
According to the WSJ, 1,000 workers have been fired in the last few weeks.
Binance Lays Off Over 1,000 Employees
According to former employees, additional staff were sacked this week. Customer service personnel were the hardest hit. Global layoffs included over three dozen customer-service professionals in India.
Before the layoffs, Binance had a global headcount of 8,000 people, according to the report.
Binance celebrated its six-year milestone on Friday.
“Today we celebrate 6 years of #Binance! Thank you for your extraordinary support over the last 6 years and we can’t wait for what lies ahead.,” it stated in a tweet post.
Today we celebrate 6 years of #Binance!
— Binance (@binance) July 14, 2023
Thank you for your extraordinary support over the last 6 years and we can't wait for what lies ahead.
Here's a message from @cz_binance to all of you for #BinanceTurns6. pic.twitter.com/Xkf8bVv5ou
A representative for Binance confirmed to WSJ that staff were being laid off, but declined to reveal how many.
“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of rightsizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles,” he added
The exchange has been the target of a number of moves by US regulators in recent months as they attempt to control an industry that has long been wild.
In June, the Securities and Exchange Commission filed a lawsuit against the company and its founder, Changpeng Zhao. It claims, among other things, that they illegally operated in the country and misappropriated consumer monies.
The charges have been refuted by Binance. The exchange has also encountered difficulties in obtaining operating permits throughout Europe.
The Justice Department’s ongoing investigation is the largest hurdle for the exchange.
Binance executives are concerned that the DOJ may charge the company and Zhao. Zhao has resisted surrendering leadership of the company or stepping down, and many inside the company feel his continued presence could risk Binance’s future, according to the Journal.
A number of high-profile employees, including the company’s lawyer in charge, chief strategy officer, and director of investigations, have lately gone.
Fearing a Justice Department action, the exchange chose to close any physical presence in the United States, where it is transferring or laying off approximately 150 individuals.
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