According to Reuters, a source familiar with the matter said that cryptocurrency exchange Binance has implemented job cuts shortly after experiencing a wave of executive departures.
In recent days, a series of high-ranking executives, including Chief Strategy Officer Patrick Hillmann, have resigned from Binance.
The uncertain future of the industry in the U.S. market, due to regulatory crackdowns on perceived illegal activities, has contributed to these layoffs at the world’s largest crypto exchange. The Wall Street Journal initially reported that over 1,000 individuals had been let go in recent weeks.
Binance CEO Changpeng Zhao took to Twitter to address the situation, stating that involuntary terminations are a regular occurrence as companies strive to enhance their talent pool. “As we continuously strive to increase talent density, there are involuntary terminations,” he said.
He also clarified that the reported numbers by the media were highly inaccurate, asserting that Binance is still actively hiring.
In the previous month, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Zhao, accusing them of operating a deceptive network. Binance has vehemently stated its intention to vigorously defend itself against these allegations.
A spokesperson for Binance highlighted the company’s growth over the past six years, expanding from a team of 30 to nearly 8,000 employees worldwide.
To ensure agility and dynamism in preparation for the next major market upturn, the spokesperson explained the need to concentrate on talent density across the organization.
Speaking about the sixth-year anniversary of the crypto exchange, CZ said that as Binance has grown into a global platform serving over 140 million people worldwide, it has overcome challenges, such as regulatory changes and market downturns, while remaining committed to user protection and compliance.
In acknowledging the importance of the crypto community globally to the growth of Binance, the CEO noted that it’s the effect of the dedication of the community of users that has made the exchange thrive.