Binance is celebrating its sixth anniversary, with over 1,000 people reportedly laid off in recent weeks, The Wall Street Journal reported.
According to former employees, cuts were global and customer-service workers were heavily affected, particularly in India. Including this week’s layoffs, over 1,000 employees have lost their jobs at the exchange. Before the slash, Binance’s global headcount was estimated at 8,000. Binance could lose more than a third of its staff due to the ongoing reorganization.
Binance announced a 20% reduction in staff on May 31, claiming it was not downsizing but reallocating resources. “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,” a Binance spokesperson told Cointelegraph at the time.
Data from Glassdoor recently unveiled that Binance was home to some of the least happy employees in the crypto industry. An exchange spokesperson explained that the company seeks to hire candidates “who can thrive in a truly high-performance environment,” in addition to being “obsessively focused on delivering for our users.”
Since early June, when Binance was hit by a wave of regulatory challenges across the globe following a lawsuit by the U.S. Securities and Exchange Commission, the exchange has experienced several setbacks.
Binance was ordered to cease operations in Belgium, failed to obtain a license in the Netherlands, was denied a crypto custody license in Germany and lost its euro banking partner all within 30 days. The exchange is also under scrutiny in France and was subpoenaed to appear before Brazil’s Congress concerning a Ponzi scheme investigation.
According to WSJ, Binance’s most enduring challenge is the ongoing investigation by the U.S. Justice Department on its activities and executives. xchange CEO Changpeng “CZ” Zhao has refused to give up control or step aside, raising concerns over Binance’s survival.
Zhao’s response to the investigations reportedly sparked the departure of several top executives recently, including former chief strategy officer Patrick Hillmann. In his remarks on Binance’s anniversary, celebrated on July 14, Zhao said the company’s journey was “never all smooth sailing.”
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