Over 1,000 employees globally have been affected by massive layoffs at the cryptocurrency exchange Binance in recent weeks as it battles regulatory scrutiny and ongoing investigations. According to a source, the exchange’s legal problems, which include the SEC probe, were the reason for the employment losses.
Over a third of Binance’s employees may ultimately be affected by job losses. Before the layoffs, the company employed about 8,000 people. The company confirmed layoffs without specifying the exact number. A spokeswoman emphasized focusing on talent density to stay agile amid future market changes.
According to a later CNBC story, the layoffs may ultimately result in the termination of 1,500 to 3,000 workers globally by the end of the year. A representative for Binance, however, disputed the higher figure and claimed it was exaggerated.
The US Department of Justice (DoJ) is investigating Binance. Fortune links recent key employee departures to CEO CZ Zhao’s handling of the matter.
Binance’s CEO CZ Zhao responded to media claims on Twitter. He disputed the figures and emphasized that the company continues to hire despite downsizing.
As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD.
On the bright side, they just can’t resist talking about us.
We are still hiring. 🤝
— CZ 🔶 Binance (@cz_binance) July 14, 2023
Binance, one of the top cryptocurrency exchanges in the world, is under a lot of strain as a result of the ongoing regulatory issues and DoJ investigation. The investigation’s conclusion is anticipated to result in a consent decree or, possibly, a huge multi-billion dollar settlement.
The issue is under development. Increased examination of Binance’s operations and compliance procedures follows employee reductions and legal challenges. This alarms both the cryptocurrency community and the financial industry. Market participants are keeping a keen eye on any new developments as the exchange makes its way through this crucial time.