Binance Fired over 1,000 Employees in Recent Weeks: Report

Binance reportedly sacked over 1,000 employees in recent weeks, further shrinking its previous 8,000-strong global workforce. The Wall
Street Journal (WSJ) reported the mass retrenchment today (Friday), citing an
insider source.

Former
employees told WSJ that more staff members across
the exchange ’s global markets were fired during this week, with customer-service workers mostly
affected. In India alone, about 40 employees in this category were let go, the outlet said.

The
downsizing comes as regulatory pressure continues to mount on the exchange,
which recently endured an exodus of senior
executives. Already, about 50 employees working for the exchange’s
so-called independent US subsidiary have been booted out.

However,
earlier this month, Changpeng ‘CZ’ Zhao, the CEO of Binance, while reacting to
the departure of Patrick
Hillmann, the ex-Chief Strategy Officer and
other key executives, dismissed speculations of troubles
at the exchange, noting that “there is turnover at every company.”

4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.

As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…

— CZ 🔶 Binance (@cz_binance) July 6, 2023

Before then, Hillman in May rebuffed
reports that Binance was pruning its workforce by 20% as a ‘cost-cutting measure,’ suggesting
that the exchange was simply going through its regular ‘talent density audit
and resource allocation’ exercise.

Let me provide some additional clarity via 🧵.

Binance is not cutting 20% of employees as a cost-cutting measure. @binance experienced true exponential growth these past 5 years — and grew its staff accordingly. This was a historic operational challenge to overcome. https://t.co/Awmh8PdT8j

— Patrick Hillmann (@PRHillmann) May 31, 2023

More Troubles for Binance

Currently,
Binance is defending against charges filed by the US Securities and Exchange
Commission (SEC) in early June. The regulator alleges that the exchange ran
unregistered trading platforms and misused customers’ funds. On the other hand, the crypto exchange is worried about possible charges from the US
Department of Justice, WSJ reported.

In the last one month, Binance has suffered several setbacks: it was forced out of Belgium, denied a license in the Netherlands and Germany, and lost its euro banking
partner.
Additionally, the exchange is under probe in France, with a lawmaker pushing for a congressional investigation
into the firm’s representative in Brazil.

However,
despite these challenges, Binance recently launched in Kazakhstan, marking its first presence in
the Central Asia sub-region.