Binance will reduce up to 30% of its staff – WSJ
Date: 2023-07-16 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
In recent weeks, the world's largest cryptocurrency exchange, Binance, has laid off more than 1,000 employees and may cut staff by another 30%.
The regulatory hurdles Binance has faced in the U.S. and several European countries have led to the layoffs of more than 1,000 people. This is reported by the Wall Street Journal, citing a source close to the company.
Before the start of mass layoffs, Changpeng Zhao's crypto exchange had about 8000 employees around the world.
According to the insider, the layoffs affected all divisions of Binance, but the customer support service suffered the most. In the future, the platform plans to reduce staff by another third.
Binance confirmed the layoffs, but did not specify exactly how many employees lost their jobs. A spokesperson for the exchange told the WSJ:
"As we prepared for the next major growth cycle, it became clear that we needed to focus on workforce density across the organization in order to remain agile and agile. This is not about downsizing, but rather about reassessing whether we have the necessary personnel and experience in critical positions.
A recent study conducted by recruiting firm TrueUp found that Binance has some of the least happy employees in the crypto industry. A spokesperson for the exchange explained that the company is committed to hiring candidates who are "capable of operating in a truly high-performance environment," as well as "obsessed with achieving results for our users."
Binance's battle with regulators continues
Binance is going through hard times: over the past few weeks, the crypto exchange has been hit by a wave of problems with regulators around the world. The platform curtailed operations in Belgium and the Netherlands, failed to obtain a custodian license in Germany, and lost its euro banking partner. The exchange is also under the scrutiny of the French authorities and has received a summons to the Brazilian Congress in connection with the investigation of the Ponzi scheme.
According to the WSJ, Binance's most serious problem is the ongoing investigation of the exchange and its executives by the US Department of Justice. Changpeng Zhao refuses to give up control of the exchange or resign, raising fears for its survival.
The publication also noted that Zhao's reaction to the investigation was the reason for the departure of several top managers, including chief strategist Patrick Hillmann. In a speech on the occasion of Binance's sixth anniversary, the exchange's CEO said that the company's journey "has never been smooth."
