Binance Cutting Staff Again

On Jul 14, 2023

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Binance, the world’s largest cryptocurrency exchange, is reducing its staff number substantially, contradicting its previous statement that it would be looking to fill numerous open roles and reevaluating its total workforce, as it confronts the most challenging legal pressures in its six-year history. Although the precise number of layoffs is unknown, Binance has confirmed that employees are being let go.

Earlier, Binance’s CEO Changpeng ‘CZ’ Zhao countered media claims on Twitter about the extent of the job cuts. The Wall Street Journal and CNBC previously reported that Binance had dismissed over 1,000 employees and plans to terminate between 1,500 to 3,000 employees, respectively, based on an unidentified source. However, Zhao stated that these figures were significantly inaccurate.

We can’t confirm the exact number, but we can confirm that layoffs have happened.

Binance had an earlier global workforce of about 8,000, according to the company. The cryptocurrency giant reiterated in a pre-written statement, first unveiled in May, that it was not necessarily “rightsizing.” Instead, it was reassessing to ensure the “right talent” was part of its workforce.

In an interview, a representative from Binance confirmed the layoffs, saying, “We can’t confirm the exact number, but we can confirm that layoffs have happened.” Simultaneously, Zhao posted on Twitter that there were “involuntary terminations,” but the company continued to hire.

As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD.
On the bright side, they just can’t resist talking about us.
We are still hiring. 🤝
— CZ 🔶 Binance (@cz_binance) July 14, 2023

Colin Wu, a journalist, reported in a newsletter in May that Binance was already cutting down its staff, as stated by various sources. However, Binance maintained at that time that it was concentrating on “talent density” and did not confirm if it was reducing staff numbers.

Security and Exchange Commission Sues Binance and CZ

This downsizing at Binance occurs as the company faces scrutiny from multiple regulators and law enforcement. The U.S. Securities and Exchange Commission lodged 13 civil charges in June against Binance, its CEO Zhao, and its affiliated company Binance US, which insists it is an independent entity.

The charges allege that Binance and Zhao have shown “blatant disregard” for U.S. federal securities laws, leading to their unjust enrichment of billions of dollars while endangering investors’ assets. Meanwhile, the U.S. Department of Justice has been investigating the exchange for several years, and in response, Binance has recently hired George Canellos, a prominent criminal defense attorney and former co-director of the SEC’s Division of Enforcement, apparently in anticipation of forthcoming federal charges.

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