Binance has sacked more than 1,000 people in recent weeks as it contends with regulatory and legal hurdles in the U.S. and other jurisdictions, the Wall Street Journal reported July 14, citing a person familiar with the matter.
The exchange had roughly 8,000 employees around the globe before the layoffs began a few weeks ago. Sources told the newspaper that the firing could continue until the exchange’s global workforce is reduced by a third.
According to the report, the exchange has cut people across the board throughout its various global operations, but customer service roles were affected the most.
Binance confirmed the layoff but did not specify how many roles were cut. A spokesperson for the exchange told WSJ:
“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.”
The cuts have been happening at the same time as multiple executives stepping down from their roles at the exchange. It is unclear whether the high-profile departures were part of the overall layoffs.
WSJ reported at the time that their departures were motivated by worries over the U.S. Department of Justice levying criminal charges against Binance and its founder Changpeng ‘CZ’ Zhao.
CZ and one of the executives said the claims were unfounded and labeled them fear-mongering by the media.
European operations slowing
Binance has had to pull out of multiple jurisdictions — primarily in Europe — in recent weeks after failing to secure licenses and approvals for its operations. It is also contending with regulatory and legal pressure in the U.S.
The exchange had bustling and massive operations across the globe until recently, and the run-in with regulators could be part of the reason behind reevaluating its workforce.
Binance has so far pulled out of the Netherlands, Germany, Cyprus, Austria, and Belgium due in recent weeks due to various reasons.
The exchange said it is shifting its focus to ensuring its ready for the upcoming Markets in Crypto Assets (MiCA) rules, which come into force in 2024 and will establish a framework of regulation and licensing for the industry.
Firms that meet the MiCA requirements will be able to operate across all EU nations via one license, and many, including Binance, are already prepping for the upcoming rules.
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