Binance to cut 30% of workforce by end of 2023

abdelaziz Fathi

Binance has reportedly slashed its workforce by more than 1,000 positions amid its ongoing legal woes with the US regulators and as recession fears linger. However, the job cuts could eventually impact more than a third of the company’s staff, which prior to the layoffs was estimated to be around 8,000 employees.

An anonymous employee familiar with the company’s plans disclosed that the layoffs are likely connected to an anticipated consent decree or settlement with the Department of Justice (DOJ).

According to the source, the job cuts will affect a significant portion of Binance’s global workforce, ranging from 1,500 to 3,000 workers, and will be executed gradually throughout the remainder of the year. The Wall Street Journal previously reported that 1,000 employees had already been laid off in recent weeks, which represent roughly one-eighth of its total headcount. The employee, who spoke on the condition of anonymity due to unauthorized disclosure of internal matters, shared these details with CNBC.

The reported layoffs come as Binance faces regulatory scrutiny and investigations in various jurisdictions. While the company has not publicly confirmed the news, a Binance representative said last month that the firm is merely prioritizing talent density throughout the organization to maintain its agility and adaptability as they are gearing up for the next bull cycle. He claims that the move was not a matter of downsizing, but rather a reassessment of whether they have the necessary talent and expertise in key positions. Consequently, Binance will continue to actively recruit and fill hundreds of vacant positions, he added.

While the specific reasons for the reported layoffs are currently uncertain, there are several factors that could have influenced the decision. The so-called crypto winter and unfavorable market conditions have apparently impacted the revenue and profitability of Binance, potentially leading to adjustments in their workforce.

Contrary to previous reports, Binance said in March that it doesn’t carry out any layoffs. Instead, the exchange posted ads to fill an additional 500 positions by the end of June, taking a somewhat contrarian view. CEO Changpeng Zhao also said Binance is planning a hiring spree in 2023, adding that the exchange increased head count in 2022 from 3,000 people to 8,000.

Binance isn’t alone in dealing with the effects of crypto’s collapse. Many other platforms slashed hundreds of jobs amid huge withdrawals and regulatory scrutiny after the implosion of FTX. The cuts were also prompted by macroeconomic and geopolitical factors, which muted customer demand, lowered trading volumes and cut sign-ups.

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