Binance lays off more than 1,000 employees, reports WSJ

In recent weeks, the cryptocurrency exchange Binance has cut more than 1,000 employees. The The Wall Street Journal reports, citing its own sources.

According to their data, the layoffs are ongoing and the company could lose up to a third of its staff, around 8,000 people.

The layoffs are global and, according to former employees, mainly affect customer-service operations.

A Binance spokesperson confirmed to the publication that the company was laying off workers, but declined to provide specific figures.

“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density within the organisation. This is not a headcount optimisation, but rather a re-evaluation of whether we have the specialists with the necessary skills and experience in the key roles,” he said.

Earlier, a group of senior executives departed from Binance. Among the departed leaders were Chief Strategy Officer Patrick Hillmann, Senior Vice President of Compliance Steven Christie, and Chief Counsel Han Ng.

In March, CFTC filed a civil suit against Binance. The agency alleges the platform traded derivatives without proper registration. In June, the claims against the exchange and its chief Changpeng Zhao were brought by SEC. The regulator brought a total of 13 counts.

However, according to The Wall Street Journal, the biggest concern among Binance’s leadership is the ongoing DOJ investigation into the company. Management believes Zhao should relinquish control of the exchange in the event of charges, as this would be crucial to its survival.

Against this backdrop, Binance has moved to remove its physical presence in the United States, relocating or laying off around 150 people. This is unrelated to the staffing of the US subsidiary, which has its own team.

Earlier in June, Colin Wu reported that the exchange began cutting staff, amounting to as much as 20% of the workforce.