Binance, has laid off 1,000 people in the continued exercise to reduce its workforce, while the crypto giant battles federal investigations and regulatory crackdowns in the United States, Wall Street Journal reported.
The laying off of employees by Binance could result in the company loosing a third of its total workforce. This could radically diminish the business of the crypto giant.
According to the WSJ report, a total of 1,000 people have been fired in recent weeks.
Former employees told WSJ that more employees were fired this week. The worst affected were customer-service workers. The cuts were global, including about three dozen customer-service employees in India.
According to the report, before the layoffs, Binance had a global staff of 8,000.
On Friday, Binance celebrated its six-year anniversary.
“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 said in a tweet message.
A Binance spokesman confirmed to WSJ that employees were being let go but declined to say 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 said.
The exchange has been the target of a series of actions by US regulators over the past months as they try to control an industry that for long ran loose.
The Securities and Exchange Commission sued the company and its founder, Changpeng Zhao, in June. It alleges they illegally operated in the country and misused customer funds, among other things.
Binance has denied the allegations. The exchange has also faced setbacks in Europe as it tries to get licenses to operate.
The biggest challenge for the exchange, however, is a continuing investigation by the Justice Department.
Binance executives are worried that the DOJ will file charges against the firm and Zhao. Zhao has resisted giving up control of the company or stepping aside, and many inside the firm believe his staying could put Binance’s survival into question, the Journal reported.
A series of high-profile employees recently left, including its general counsel, chief strategy officer and head of investigations.
Amid fears of a Justice Department action, the exchange decided to eliminate any physical presence in the US, where it is relocating or laying off about 150 people.
(With inputs from WSJ)
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Updated: 14 Jul 2023, 10:43 PM IST