Of its 8,000-strong global workforce, Binance, has let go 1,000 in the past couple of weeks. According to media reports, the cryptocurrency exchange is facing federal investigations and close scrutiny by regulators in the US. As per the Wall Street Journal, it has laid of a third of its entire workforce.
The maximum impact of the layoffs has been on the customer-service department. About 36 people in the customer-service department have been let go in India.
The company completed six years of operations last week.
When the layoffs were announced about a week ago, there were speculations that the crypto exchange was preparing to sell its US operations and that it may be be going out of business altogether.
The company is reportedly now planning to focus on agility and has decided to re-evaluate its talent pool and expertise across various roles.
Last month, that is, June 2023, Changpeng Zhao, founder, Binance, was sued by the Securities and Exchange Commission for allegedly running their operations illegally in the US and wrongly using customers’ funds. The cryptocurrency, has, of course, denied these accusations amidst efforts to obtain operational licences in Europe.
With Zhao facing charges and refusing to give up his post, the company may find it difficult to stay afloat.
In early March, 2023, Binance had made headlines when, unlike its peers, it had admitted its plans to bolster its workforce and clarified that it had no plans for layoffs.