Crypto giant Binance has sacked more than 1,000 employees in the past few weeks amid ongoing investigations and regulatory crackdowns in the US and elsewhere, reported The Wall Street Journal on Friday, citing a person familiar with the moves. It also said that the crypto exchange plans to downsize its workforce by letting go of around a third of its staff.
Before the layoffs, Binance had a global staff of 8,000, the report noted.
As per the report, layoffs have taken place this week, particularly impacting customer-service workers. The workforce reductions have been implemented on a global scale, affecting approximately three dozen customer-service employees based in India.
In recent weeks, the company has experienced a series of executive departures, with Chief Strategy Officer Patrick Hillmann among those who resigned. In the previous month, US regulators filed a lawsuit against Binance and its CEO Changpeng Zhao, accusing them of running a “web of deception.”
Binance has expressed its intention to vigorously defend itself against these allegations.
A Binance spokesman confirmed to The Wall Street Journal that employees were being let go but didn’t confirm the number of laid-off employees.
“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,” he said.
It also noted that in response to fears of potential Justice Department action, Binance has decided to eliminate its physical presence in the US, resulting in the relocation or layoff of approximately 150 employees.
Binance.US, a separate exchange operating in the U.S., is also facing challenges and a decline in market share following a lawsuit filed by the US Securities and Exchange Commission (SEC), the report further added.
Amidst these circumstances, Binance marked its six-year anniversary on Friday with an optimistic CEO message on Twitter, expressing anticipation for the future.