• Binance is reportedly reducing its global headcount by 1,000 employees.
• Customer service workers are heavily affected by the cuts.
• The exchange is also facing several regulatory issues, including investigations from the U.S. Justice Department.
Binance Headcount Reduction
Binance is celebrating its sixth anniversary, with over 1,000 people reportedly laid off in recent weeks, according to The Wall Street Journal. The ongoing workforce reduction is global and customer service workers are heavily affected, particularly in India. This brings Binance’s total headcount down to 8,000 from 9,000 before the reductions began.
Reason for Reductions
Binance announced a 20% reduction in staff on May 31st due to a need for “talent density across the organization” to stay nimble and dynamic. Data from Glassdoor recently revealed that Binance was home to some of the least happy employees in the crypto industry; however, an exchange spokesperson clarified that they seek candidates who can thrive in a high-performance environment and deliver for users.
Since early June when Binance was hit with a wave of regulatory challenges following a lawsuit by the United States Securities and Exchange Commission (SEC), it has experienced several setbacks such as being ordered to cease operations in Belgium or failing to obtain a license in the Netherlands. In addition, Binance has been denied a crypto custody license in Germany and lost its euro banking partner all within 30 days. It is also under scrutiny in France and was subpoenaed to appear before Brazil’s Congress concerning a Ponzi scheme investigation.
U.S Justice Department Investigation
The WSJ reports that Binance’s most enduring challenge is an ongoing investigation by the U.S Justice Department of its activities and executives led by CEO Changpeng Zhao (CZ). These investigations have sparked the departure of several top executives recently including former chief strategy officer Patrick Hillmann .
Although there have been significant layoffs at Binance for their sixth anniversary celebration as well as other challenges due to regulatory issues around the world, CZ remains committed towards leading his team through this difficult time..