Binance is said to be laying off more than 1,000 employees as part of a restructuring effort that could lead to cuts of more than a third.
Wall Street Journal subscriber Insight on June 14th. According to an unnamed Binance spokesperson, 1,000 people have already been laid off. They added that as many as 3,500 people will lose their positions on Binance by the end of 2023.
A week ago, several senior executives, including Chief Strategy Officer Patrick Hillman and General Counsel Hong Ng, shared their departure from the company.
Moreover, in March 2023, the company responded to rumors of 20% layoffs, which had not been officially confirmed by that time.
Binance CEO Changpeng Zhao quickly responded to the layoffs on Twitter in his usual fashion, accusing the media of spreading Fear, Uncertainty and Doubt (FUD). However, Czechoslovakia still confirmed that some job cuts will eventually take place.
Binance’s downsizing is taking place amid uncertainty over the crypto industry in the US, as regulators crack down on activities they deem illegal.
The Securities and Exchange Commission (SEC) has filed a lawsuit against Binance and its CEO, accusing them of operating a “scam network.” In response, Binance intends to vigorously defend these allegations.
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Subsequently, Binance was ordered to cease operations in Belgium, failed to obtain a license in the Netherlands, was 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.
Market job cuts
The cryptocurrency industry wasn’t the only one making cuts this month. According to the Forbes 2023 Layoff Tracking Report, Microsoft has reportedly laid off 276 employees in the Seattle area. It also revealed plans to lay off an additional 158 employees from its headquarters in Redmond, Washington.
A Microsoft spokesperson describes to Forbes cuts as a routine and necessary aspect of running a business, separate from the 10,000 job cuts the company already implemented earlier this year.