"This is troubling, but there may be a reason for Binance to lay off employees."
Cryptocurrency exchange giant Binance has recently reportedly laid off thousands of their employees as its legal battle with the Securities and Exchange Commission (SEC) is still pending.
There is no denying that Binance Chief Executive Officer (CEO) Changpeng Zhao (CZ) has laid off employees, but he refused to agree on the total number of laid off staff revealed by the media.
Explained further, the Wall Street Journal claims that Binance has fired more than 1,000 of its employees as it prepares for a long legal battle with United States (US) regulators.
While former Binance employees believe there will be more layoffs in the coming weeks with the customer support team likely to be the most affected.
As such, CNBC expects Binance's total layoffs to reach 3,000, which is almost half of the crypto exchange's workforce.
CNBC also stated that the Department of Justice (DOJ) could help Binance, but be aware that it could cost billions of dollars.
However, CZ not only told all his followers to learn to ignore the FUD coming from traditional media outlets but also insisted on using the phrase regularly for seven consecutive months.
CZ also confirmed that Binance is acting this way as part of its efforts for "talent density", which is a measure to help identify the ratio of high-skilled to underperforming members on the team.
