Binance Implements Global Workforce Reduction, Including Layoffs in India

• ByStartupStory     |    July 15, 2023

Cryptocurrency exchange Binance has reportedly carried out a cost-cutting initiative resulting in the layoff of approximately 1,000 employees worldwide. The Wall Street Journal, citing former employees, revealed that customer-service workers were the most affected by the downsizing. The layoffs were not confined to a specific region and included around 36 customer-service employees in India. Prior to the layoffs, Binance had a global staff of 8,000 individuals.

In response to the staff reduction, a Binance spokesperson explained, “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,” as shared with WSJ.

Ironically, the layoff news emerged on the same day as the company’s six-year anniversary, prompting Binance to express gratitude to its supporters and anticipate the future through a celebratory tweet.

In addition to its workforce changes, Binance has faced regulatory challenges. On June 5, 2023, the United States Securities and Exchange Commission (SEC) filed 13 charges against Binance and its CEO CZ, including allegations of allowing high-value U.S. customers to trade secretly on the platform and exerting control over customer assets.

Gary Gensler, SEC Chair, commented on the charges, stating, “Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”

Furthermore, the Securities and Exchange Commission Nigeria recently issued a circular ordering the cessation of operations by Binance Nigeria Limited. The company has also witnessed the departure of several prominent employees, including its Chief Strategy Officer (CSO) Patrick Hillmann, general counsel, chief strategy officer, and head of investigations.

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