Binance is reportedly laying off over 1,000 employees as part of a restructuring effort that could result in a reduction of more than a third.
Ex-employees claim that job cuts affected customer service personnel worldwide, particularly in India. Over 1,000 workers at the exchange have lost their jobs as of this week’s layoffs.
The projected global headcount of Binance before the reduction was 8,000. Due to the upcoming restructure, Binance may lose over a third of its personnel.
On May 31, Binance declared a 20% employee cut while asserting that it was simply reallocating resources rather than downsizing. A representative for Binance at the time said, “As we get ready for the next major bull cycle, it has become evident that we need to focus on skill density across the organization to guarantee we remain nimble and dynamic.
Recent data from Glassdoor revealed that some of the unhappiest workers in the cryptocurrency business worked at Binance. A representative for the exchange said the firm looks for people that “can thrive in a truly high-performance environment” and are “obsessively focused on delivering for our users.”
Binance had faced several setbacks since early June when the exchange was subjected to a global wave of regulatory issues due to a complaint filed by the US Securities and Exchange Commission.
Within 30 days, Binance was required to stop operations in Belgium, failed to secure a license in the Netherlands, was denied a license for crypto custody in Germany, and lost its euro banking partner.
The exchange was summoned to appear before Brazil’s Congress as part of an inquiry into a Ponzi scam and is also being investigated in France. The WSJ claims that the ongoing inquiry into Binance’s operations and executives by the U.S. Justice Department is the company’s most difficult obstacle.
Changpeng “CZ” Zhao, the CEO of Binance, has resisted ceding power or stepping down, raising questions about the exchange’s viability. According to reports, many top employees, including former Chief Strategy Officer Patrick Hillmann, recently left their positions due to Zhao’s response to the probes. Zhao stated during his remarks at Binance’s anniversary celebration on July 14 that the company’s journey could have been smoother sailing.
