The Wall Street Journal (WSJ) has reported, citing sources, that major cryptocurrency exchange Binance has laid off more than 1,000 people worldwide in recent weeks. Regulatory challenges, including an ongoing legal investigation by the U.S. Securities and Exchange Commission (SEC), are said to be behind the move.
Ultimately, more than a third of the workforce, which was about 8,000 before the cuts, could be affected.
Public Relations Manager Approves Staff Reductions
A Binance spokesperson confirmed to the WSJ that it had cut staff, but declined to provide an exact number.
“As we prepare for the next big bull cycle, it has become clear that we need to focus on talent density across the organization to remain agile and dynamic,” the spokesperson said.
CNBC said on Thursday that 1,500 to 3,000 employees would eventually be laid off globally, with the layoffs expected to continue until the end of the year, citing current employees familiar with Binance’s plans. reported. A Binance spokesperson, meanwhile, countered that the 3,000-employee figure was too high.
Caused by Justice Department investigation
CNBC reported that the job cuts were due to an ongoing U.S. Department of Justice investigation into Binance. The investigation is likely to end in either a consent decree or a multi-billion dollar settlement, the current employee said.
Fortune magazine reported that several senior Inance executives have decided to leave the company in recent weeks due to the handling of a Justice Department investigation by Binance CEO Changpeng Zhao, AKA CZ.
Mr. Zhao said on Twitter on the 15th that he was still hiring, saying, “The numbers reported by the media are completely different.”
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
｜Editing: Rinan Hayashi
| Image: CoinDesk
｜Original: Binance Has Cut 1,000 Workers in Recent Weeks: WSJ