Binance Reduces Workforce by 1,000 Employees

Leading crypto exchange Binance has reduced its global workforce by 1,000 staff in recent weeks, a report by WSJ on Friday disclosed. The layoff, which will continue, will see Binance trim up to one-third of its staff, people close to the development stated.

Binance is laying off workers as the ongoing regulatory clampdown on the exchange by US regulators continues. An earlier report by Coinfomania stated that Binance lost some of its top executives who were unsatisfied with CEO Changpeng Zhao’s (CZ) handling of the indictment by the US Department of Justice (DOJ). However, people familiar with the matter have disclosed that the exodus has gone down the ranks and affected a large chunk of employees.

Re-Evaluating, Not Right Sizing

In response to the news, a Binance spokesman confirmed the layoffs but stated that they were steps taken for talent re-evaluation instead of alleged rumors of rightsizing by the media.

“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 stated.

The spokesman, however, declined to mention how many employees Binance has laid off or if the exchange intends to continue the process as regulatory issues continue to hamper its operations.

CZ also commented on the news, stating that the figures from circulating reports were “all way off.” In a tweet late Friday, he noted that the workforce trim was to increase talent density, adding that the media always loves to talk about Binance.

Customer Service Leads Exodus

According to former employees, the customer service department of the exchange led the global layoff this week, with over thirty-six of them affected only in India. 

Binance’s internal and external woes continue despite the exchange dominating proceedings in centralized exchange market shares. A recent report shows that Binance still holds 59.99% of the CEX market.

However, a series of reprimands from different US regulators and the exchange’s inability to gain licenses in countries like Germany and Canada have seen it lose a good number of users.