Top global crypto exchange Binance has reportedly axed more than 1,000 employees in recent weeks – and the company’s CEO, Changpeng Zhao, doesn’t seem too concerned about it.
A Wall Street Journal report reveals the layoffs, citing a source familiar with the matter.
A Binance spokesman 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 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.”
A crypto trader promptly shared the layoffs story on Twitter, and Zhao replied with a laughing emoji.
They can’t stop talking about us… ?
— CZ ? Binance (@cz_binance) July 14, 2023
Zhao claims that the number of layoffs quoted in media reports is “way off.”
“As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD (fear, uncertainty, doubt). On the bright side, they just can’t resist talking about us. We are still hiring.”
However, the Binance CEO did acknowledge last week that there was turnover at his company.
“As markets and the global environment for crypto changes, as our organization evolves, and as personal situations change, there is turnover at every company. We thank all of our ex-team members for their contributions 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 truly high caliber.
We continue to BUILD, and to continue to hire.”
Binance employed around 8,000 people prior to slashing its workforce. The report’s anonymous source says the layoffs happened in recent weeks and could expand in the future to more than one-third of the company’s staff.
In early June, the U.S. Securities and Exchange Commission (SEC) sued Binance and Zhao under several allegations of breaking securities laws and other accusations.
The regulator accused the company of selling unregistered “crypto asset securities” among other charges. 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 U.S. Department of Justice (DOJ) to investigate Binance.
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