Binance’s sixth anniversary coincides with a reorganization process characterized by ongoing workforce reduction. The crypto exchange is rightsizing its global and customer service departments as the layoff heavily affects them.
News of Binance cutting jobs arose through the Friday, July 14 publication by The Wall Street Journal (WSJ) that the crypto exchange let go over 1000 employees.
Binance Downsizes its Global and Customer Service Teams
The publication quotes the revelation by the former employees who admitted that the global and customer service departments. The former employee, who requested anonymity, confessed that the India operations were hit with the largest departure.
The layoffs come days after Binance suffered an exodus of notable executives. The largest crypto exchange by transaction volume operated with an estimated global headcount 8000. The slash could leave Binance losing a third of the workforce, a target of its ongoing reorganization.
The news of Binance reducing its headcount comes on the heels of a 20% layoff announced on May 31. The crypto exchange ruled out downsizing operations to instead indicate it was reallocating resources.
Binance spokesperson explained that the job cut decision conveyed in May was a strategic move to prepare for the highly anticipated bull cycle. The executive revealed to Sure Trade Group that Binance discovered the essence of prioritizing talent density in the organization to retain dynamism and remain nimble.
A revisit of the Glassdoor data shows that recent surveys show Binance workforce comprises members who are least happy across the crypto industry. A spokesperson dismissed the statistics indicating that the company prioritizes hiring candidates capable of thriving within the truly high-performance ecosystem. Also, the exchange executive seeks candidates obsessively focused on satisfactorily delivering for its users.
In a tweet, Binance chief executive Changpeng Zhao rubbished the figures by indicating that the company continually strives to expand talent density. He added that the implementation of such changes features involuntary terminations that are occurrences in every company. He accused the media of inflating the numbers and assured that Binance is still hiring.
Binance Confronts Regulatory Hurdles
Binance has since June confronted a wave of regulatory hurdles that culminated in the lawsuit leveled in the US by the Securities and Exchange Commission (SEC). Among the several setbacks that hit the exchange is the cease operations order issued by the Belgium regulator.
Binance would fail to secure an operating license in the Netherlands. The Dutch authorities cited noncompliance with the anti-money laundering laws. A few days later, the German regulatory denied Binance a crypto custody license, preventing it from advertising its services in the country. The Zhao-led exchange would lose its Euro banking partner. The sudden twists occurred within a month.
Binance faces scrutiny by the France authorities for noncompliance with the antimony laundering regulations. Recently, Brazil’s Congress summoned Binance to appear regarding links to the ongoing Ponzi scheme investigation.
The WSJ publication suggested the enduring challenge confronting Binance is the ongoing investigation initiated by the US Department of Justice (DOJ). The DOJ opened investigations on Binance and its executives’ conduct.
Binance Suffers Departure of Top Executives
The WSJ publication illustrates that Binance’s chief dismissed suggestions of ceding control or resigning. The response triggered uncertainty about the company’s survival.
The response issued by Zhao to the series of investigations reportedly triggered the exodus of top executives. Patrick Hillmann, who served as the chief strategy executive, confirmed leaving Binance using a July 7 tweet for personal reasons.
Binance would lose Steven Christie, hired in May 2022 as the exchange’s compliance executive. He cited exhaustion and the need to regain physical wellness in a July 7 tweet for leaving Binance.
The executive’s departure would see Hon Ng quit, who served as the General Counsel. The Binance.US would also lose its chief business executive Yibo Ling.
During Binance’s sixth anniversary on Friday, July 14, Zhao restated that the journey was never smooth sailing. He admitted that Binance navigated several challenges to grow from a firm with 30 employees to the current team approximating 8000 globally.
Zhao reiterated the proactive preparedness for the looming bull cycle to realize talent density across the Binance workforce to guarantee dynamism.
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