Binance, the popular cryptocurrency exchange, is marking its sixth anniversary amidst reports of significant layoffs.
The Wall Street Journal revealed that more than 1,000 employees have been laid off in recent weeks, resulting in a global downsizing of the workforce.
Customer service workers, particularly in India, have been heavily impacted by these cuts. With these recent layoffs, the total number of job losses at Binance now exceeds 1,000.
Prior to these cuts, Binance’s global headcount was estimated to be around 8,000, implying a potential reduction of more than one-third of its staff due to ongoing restructuring efforts.
On May 31, Binance had already announced a 20% reduction in staff, although they insisted it was not a downsizing measure but rather a reallocation of resources.
According to a spokesperson for Binance who spoke to Cointelegraph, the aim of these changes was to enhance the company’s agility and adaptability in preparation for the next major bullish phase in the cryptocurrency market.
Recent data from Glassdoor revealed that Binance had some of the least satisfied employees in the crypto industry.
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In response, a Binance spokesperson stated that the company seeks to hire individuals who can excel in a high-performance environment and are entirely dedicated to delivering exceptional service to users.
Since early June, Binance has faced a series of regulatory challenges globally, triggered by a lawsuit filed by the United States Securities and Exchange Commission.
In just 30 days, Binance was ordered to cease operations in Belgium, failed to secure a license in the Netherlands, was denied a crypto custody license in Germany, and lost its euro banking partner.
Furthermore, the exchange is under scrutiny in France and has been summoned to appear before Brazil’s Congress in relation to a Ponzi scheme investigation.
According to The Wall Street Journal, Binance’s most significant ongoing challenge is the investigation by the U.S. Justice Department into its activities and executives.
Binance CEO Changpeng “CZ” Zhao has steadfastly refused to relinquish control or step aside, which has raised concerns about the exchange’s long-term survival.
This stance reportedly led to the departure of several top executives, including former Chief Strategy Officer Patrick Hillmann.
On Binance’s sixth anniversary, celebrated on July 14, Zhao acknowledged that the company’s journey had been far from smooth sailing.
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