Binance, the world’s largest cryptocurrency exchange, is planning to lay off 20% of its workforce in June. The layoffs come amid growing regulatory pressure on the cryptocurrency industry.
Binance CEO Changpeng Zhao said that the layoffs are necessary to “focus on talent density.” He said that the company is “overstaffed” in some areas and that the layoffs will help to “ensure that we are best positioned for long-term growth.”
The layoffs come at a time when Binance is facing increasing regulatory scrutiny. The company has been banned from operating in several countries, including the United States and the United Kingdom. Binance is also under investigation by the U.S. Securities and Exchange Commission.
The layoffs at Binance could signal a shift in the cryptocurrency market. The cryptocurrency industry has been booming in recent years, but it is now facing increasing regulatory pressure. This could lead to a slowdown in the growth of the industry.
Binance’s Chief Communications Officer Patrick Hillmann said that the layoffs in June and internal reallocation of resources are necessary as the scrutiny persists. He continued:
“Regulators in almost every major market are also working overtime to provide greater clarity for their expectations of the industry and the asset class more broadly, which is putting even more pressure on orgs to adapt or fall by the wayside.”