Leading crypto exchange Binance has cut hundreds of jobs after a string of executive exits, according to a media report. The news, which comes as the coin trading platform marks its sixth anniversary amid increased pressure from regulators, was termed as FUD by founder Changpeng Zhao who said his company is still hiring.
Major Digital Asset Exchange Binance Cutting Jobs Amid U.S. Regulatory Crackdown, Report
Binance, the world’s biggest crypto exchange, is reducing its workforce after several executives left the company. Media reports about the layoffs come against the backdrop of an ongoing clampdown on the industry and the trading platform in the U.S. where it’s involved in lawsuits with the securities and futures commissions and is under investigation by the Department of Justice.
On Friday, the Wall Street Journal reported that Binance had laid off more than 1,000 employees in recent weeks. A source familiar with the matter later confirmed to Reuters that the crypto behemoth has been cutting jobs. The reports come just days after it became clear that several execs are leaving the digital assets platform with the largest daily trading volume.
Just like when he reacted to the executive exodus, Binance founder and CEO Changpeng Zhao described the news of massive layoffs as FUD (fear, uncertainty and doubt). In a tweet, he stated that the reported numbers “are all way off” and insisted that the company is still hiring.
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
At the end of May, CZ refuted rumors suggesting that up to a fifth of the exchange’s workforce might have to leave due to poor market conditions. Last week, he pointed out that his organization has grown from 30 to 8,000 people in just six years.
“As Binance celebrates our sixth anniversary, I want to thank everyone in our community for your extraordinary support. Binance would not be here without you,” CZ said in a video statement on July 14. “We can’t wait for what lies ahead,” the exchange tweeted.
Also on Friday, CNBC reported that Binance intends to lay off between 1,500 and 3,000 people globally through the end of the year, including the 1,000 already let go as per WSJ’s report, in response to an ongoing probe by the U.S. Justice Department over suspected money laundering violations and sanctions evasion.
The report quoted a “current employee familiar with the company’s plans” who asked to remain anonymous but also noted that a representative disputed the higher number. “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,” the spokesperson said.
Do you expect more layoffs at the world’s largest cryptocurrency exchange? Tell us in the comments section below.
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