The biggest crypto exchange Binance is reportedly planning to layoff between 1,500 and 3,000 employees by the end of the year, according to an anonymous source cited by CNBC on July 14, 2023. This move is seen as a response to an ongoing probe by the U.S. Department of Justice and SEC.
Binance CEO Changpeng Zhao (CZ) swiftly took to Twitter, stating
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.
CZ also disputed the reported layoff numbers, calling them “way off” and attributing the inflated figures to FUD (Fear, Uncertainty, and Doubt) spread by the media.
Despite the layoffs, CZ emphasized that Binance is still in the process of hiring. He highlighted the company’s ongoing efforts to increase “talent density” and expressed optimism about the future, noting that the media’s continued focus on Binance underscores its significance in the crypto industry.
The layoffs occur as Binance faces severe regulatory obstacles. The exchange has been under attention from both the Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission due to allegations of improper treatment of client funds and running an unlicensed exchange in the country.
Both regulatory challenges and Binance’s rapid growth have been defining features of the company’s history. The exchange begin its operation in 2017, then quickly rose to prominence and expanded to become the largest cryptocurrency exchanges in 2019.
There have previously been speculations of layoffs at Binance as a result of a sharp decline in trade volume and regulatory concerns.
On June 6, 2023, Binance co-founder He Yi vehemently denied that the whole BNB chain team will be fired.
On June 1, 2023, according to unidentified sources and a 20% reduction estimate, Crypto writer Colin Wu first broke the news of possible layoffs. CZ responded by calling these allegations “FUD” and highlighting the fact that Binance has maintained a profit since its fourth month of operation, even through two crypto winters.