Binance Celebrates Its Sixth Anniversary, With Over 1,000 Layoffs in Recent Weeks, The Wall Street Journal mentioned.
According to former employees, the cutbacks were global and customer service workers were hit hard, particularly in India. Including this week’s layoffs, more than 1,000 stock exchange employees have lost their jobs. Before the slash, the global number of Binance employees was estimated at 8,000. Binance may lose more than a third of its employees due to the ongoing reorganization.
Binance announced a 20% staff cut on May 31, claiming it was not a downsizing but rather a reallocation of resources. “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 agile and dynamic,” a Binance spokesperson told Cointelegraph at the time.
Data from Glassdoor recently revealed that Binance was home to some of the least happy employees in the crypto industry. A spokesperson for the exchange explained that the company is looking to hire candidates who are “able to thrive in a truly high-performance environment,” as well as “extremely focused on placing orders for our users.”
Since early June, when Binance was hit by a wave of regulatory challenges around the world in the wake of a lawsuit by the US Securities and Exchange Commission, the exchange has faced several setbacks.
Binance was ordered to cease operations in Belgium, failed to obtain a license in the Netherlands, denied a license to hold cryptocurrencies in Germany and lost its euro banking partner within 30 days. The exchange is also under scrutiny in France and has been summoned to appear before the Brazilian Congress over a Ponzi scheme investigation.
According to the Wall Street Journal, the biggest challenge facing Binance is the ongoing investigation by the US Department of Justice into its activities and its executives. xchange CEO Changpeng “cz” Zhao has refused to relinquish control or step down, raising concerns about Binance’s survival.
Zhao’s response to the investigations reportedly led to the recent departures of several senior executives, including former chief strategy officer Patrick Hillman. In his remarks on Binance’s anniversary, which is celebrated on July 14, Zhao said that the company’s journey has “never been smooth sailing.”
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