Binance Lays Off Over 1,000 Employees
Crypto exchange reduces workforce as Justice Department investigation continues Photo Illustration: THE WALL STREET JOURNAL By Patricia Kowsmann and Caitlin Ostroff July 14, 2023 12:30 pm ET Binance, the giant crypto exchange, is cutting a big chunk of its workforce during a federal crackdown in the U.S. Over 1,000 people have been fired in recent weeks, according to a person familiar with the moves. The exercise, which is continuing, could result in Binance losing more than a third of its staff, the person said. More employees were laid off this week, according to former employees, who said customer-service workers were heavily affected. The cuts were global, including about three dozen customer-service employees in India. The Wall
Photo Illustration: THE WALL STREET JOURNAL
Binance, the giant crypto exchange, is cutting a big chunk of its workforce during a federal crackdown in the U.S.
Over 1,000 people have been fired in recent weeks, according to a person familiar with the moves. The exercise, which is continuing, could result in Binance losing more than a third of its staff, the person said.
More employees were laid off this week, according to former employees, who said customer-service workers were heavily affected. The cuts were global, including about three dozen customer-service employees in India.
The Wall Street Journal has reported layoffs and resignations were taking place, including in the U.S., but the scope of the cuts weren’t known.
A Binance spokesman confirmed employees were being let go but declined to say how many.
“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,” he said.
Before the layoffs, Binance had a global staff of 8,000.
Binance celebrated its six-year anniversary on Friday.
Photo: DADO RUVIC/REUTERS
The exchange has been the target of a series of actions by U.S. regulators over the past months as they try to control an industry that for long ran loose. The Securities and Exchange Commission sued the company and its founder, Changpeng Zhao, in June. It alleges they illegally operated in the country and misused customer funds, among other things. Binance has denied the allegations. The exchange has also faced setbacks in Europe as it tries to get licenses to operate.
The biggest challenge for the exchange, however, is a continuing investigation by the Justice Department. The Journal reported last week that Binance executives have grown worried that the DOJ will file charges against the firm and Zhao. Zhao has resisted giving up control of the company or stepping aside, and many inside the firm believe his staying could put Binance’s survival into question, the Journal reported.
The Securities and Exchange Commission is separately suing two major cryptocurrency platforms, Binance and Coinbase. WSJ’s Caitlin Ostroff breaks down the lawsuits and their potential impact on the crypto industry. Photo illustration: Adam Adada/Xingpei Shen
A series of high-profile employees recently left, including the company’s general counsel, chief strategy officer and head of investigations.
Amid fears of a Justice Department action, the exchange decided to eliminate any physical presence in the U.S., where it is relocating or laying off about 150 people.
Binance has a separate exchange in the U.S., Binance.US, whose workforce is separate and which is facing its own challenges. After the SEC lawsuit its market share took a dive.
On Friday, Binance celebrated its six-year anniversary.
“We can’t wait for what lies ahead,” it said in a tweet message.
—Dave Michaels contributed to this article.
Write to Patricia Kowsmann at [email protected] and Caitlin Ostroff at [email protected]
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