Binance lays off over 1,000 employees amid regulatory hurdle

Binance is reportedly laying off over 1,000 employees as part of a restructuring effort that could result in a reduction of more than a third.

Wall Street Journal shared an insight on June 14. According to an unnamed Binance spokesperson, 1,000 people have already been laid off. They added that up to 3,500 people will lose their positions in Binance by the end of 2023.

A week earlier, several senior executives, including chief strategy officer Patrick Hillmann and general counsel Hong Ng, also shared their departure from the company.

Moreover, in March 2023, the company responded to rumors of 20% layoffs, which were not officially confirmed by then.

Binance’s CEO, Changpeng Zhao, quickly reacted to the layoffs on Twitter in his usual fashion, accusing the media of spreading fear, uncertainty and doubt (FUD). However, CZ still confirmed that some job cuts eventually took place.

The downsizing of staff at Binance occurs amidst uncertainty for the crypto industry in the United States, with regulatory bodies cracking down on activities they perceive as unlawful.

The Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, accusing them of operating a “web of deception.” In response, Binance firmly intends to defend these allegations vigorously.

Binance was later ordered to cease operations in Belgium, failed to obtain a license in the Netherlands, was denied a crypto custody license in Germany, and lost its euro banking partner all within 30 days. The exchange is also under scrutiny in France and was subpoenaed to appear before Brazil’s Congress concerning a Ponzi scheme investigation.

Market-wide job cuts

The crypto industry isn’t the only one making cuts this month. According to the Forbes 2023 layoff tracker, Microsoft reportedly laid off 276 employees in the Seattle area. It also revealed its plans to cut an additional 158 employees from its Redmond headquarters in Washington.

A Microsoft spokesperson to Forbes describes the cuts as a routine and necessary aspect of business management, separate from the 10,000 job reductions the company had already implemented earlier this year.