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Multiple traditional media sources have recently reported that Binance, the largest cryptocurrency exchange globally, has either already laid off or will need to lay off thousands of employees due to its ongoing legal challenges with US regulators.
The CEO of the company acknowledged the layoffs but contested the “FUD” figures regarding the number of employees let go.
CNBC, WSJ Reports
According to a source familiar with the situation, the Wall Street Journal reported on Friday that Binance has already terminated over 1,000 employees as it braces for a protracted and expensive legal battle with US authorities.
Former employees indicated that additional layoffs are anticipated in the coming weeks, particularly affecting the customer support team.
“As we prepare for the next significant bull cycle, it has become evident that we need to concentrate on talent density throughout the organization to ensure we remain agile and dynamic. This is not merely a case of rightsizing, but rather, reassessing whether we possess the appropriate talent and expertise in essential roles,” – stated a spokesperson for Binance.
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CNBC went further, suggesting that total layoffs within the exchange could reach 3,000, which represents nearly half of the company’s reported workforce.
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The source for the media outlet mentioned that the DOJ case could alter Binance “fundamentally,” as a settlement could potentially cost the firm billions.
CZ Confirms But Not Everything
Changpeng Zhao, CEO of Binance, began this year by advising his followers to disregard much of the FUD emanating from traditional media. Over the next seven months, he found himself reiterating that sentiment frequently.
Regarding the layoff reports, CZ confirmed that the company had to implement such measures, which he described as “involuntary terminations.” However, he emphasized that Binance is pursuing this course of action to achieve “talent density.”
Moreover, CZ strongly disagreed with the previously mentioned figures concerning the number of employees laid off.
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