Global crypto exchange Binance has reportedly laid off more than 1,000 employees in recent weeks — and the company’s CEO, Changpeng Zhao, doesn’t seem too concerned about that.
A report in the Wall Street Journal reveals the layoffs, citing a source familiar with the matter.
A Binance spokesperson confirmed the layoffs to the news outlet, but declined to specify the total number of people the company plans to let go.
“As we prepare for the next big bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain agile and dynamic. This is not a matter of granting rights, but rather re-evaluating whether we have the right talent and expertise in critical roles.”
A crypto trader promptly shared the firing story on Twitter, and Zhao replied with a laughing emoji.
They keep talking about us… ?
— CZ? Binance (@cz_binance) July 14, 2023
Zhao claims that the number of layoffs mentioned in media reports is “a long way off”.
“As we continually strive to increase talent density, there are involuntary terminations. This happens in every company. The figures reported by the media are not correct at all. 4 FUD (fear, uncertainty, doubt). On the plus side, they just can’t help but talk about us. We are still hiring.”
However, Binance’s CEO did recognize last week that there was turnover at his company.
“As markets and the global environment for crypto change, as our organization evolves and personal situations change, there is revenue at every company. We thank all our ex-team members for contributing to our growth and wish them all the best. We also congratulate our team members who have grown into these new roles. They are all really high caliber.
We keep BUILDING and keep hiring.”
Binance employed about 8,000 people before the headcount was cut. The report’s anonymous source says layoffs occurred in recent weeks and could increase to more than a third of the company’s workforce in the future.
In early June, the US Securities and Exchange Commission (SEC) sued Binance and Zhao on several allegations of violating securities laws and other charges.
The regulator accused the company of selling unregistered “crypto asset securities”, among other things. Binance called the SEC’s lawsuit “misguided.”
Later that month, Democratic Senators Elizabeth Warren of Massachusetts and Chris Van Hollen of Maryland accused the crypto exchange of lying to Congress after lawmakers questioned company officials about its business practices. The senators asked the US Department of Justice (DOJ) to investigate Binance.
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