Binance cuts over 1,000 jobs as US regulatory pressure continues

Binance

Binance is reducing its workforce significantly by slashing 1,000 employees recently as scrutiny from US authorities intensifies.

Further reductions could lead to the crypto exchange losing over one-third of its staff.

Former staffers reported additional cuts this week, with customer service workers being heavily impacted. 

Read More: Binance’s US affiliate cuts 50 jobs following SEC lawsuit

The job losses were felt globally, including the dismissal of around three dozen customer service employees in India. 

While previous reports mentioned layoffs and resignations, the full extent of the downsizing was unknown.

A company spokesperson confirmed the layoffs but did not disclose the exact number. 

They said: “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.”

Before the layoffs, Binance had a headcount of 8,000.

Read More: Binance refused licences across Europe as troubles continue

The exchange has faced mounting regulatory pressure in the US, including a suit by the Securities and Exchange Commission (SEC) in June. 

The agency accused Binance and its founder, Changpeng Zhao, of illegal operations within the country and alleged misappropriation of customer funds. 

Binance has denied these allegations. 

The exchange has also encountered challenges in obtaining operating licenses in Europe.

However, the most significant setback remains an ongoing probe by the US Department of Justice (DOJ). 

The reports say Binance executives are concerned that the DOJ might file charges against the company and Zhao. 

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Despite these concerns, Zhao has resisted relinquishing control or stepping aside.

Internal discussions within the company suggest his continued involvement may jeopardize Binance’s survival.

Several high-profile employees, including the general counsel, chief strategy officer, and head of investigations, have recently departed from Binance. 

Amid fears of DOJ action, the exchange has decided to eliminate its physical presence in the US, leading to the relocation or termination of approximately 150 employees.

Binance.US, the separate US exchange entity, faces its own challenges and market share decline following the SEC lawsuit.

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