Amidst the ongoing global economic slowdown, numerous nations are grappling with the challenge of maintaining economic stability. This economic turbulence is not sparing even the largest corporations. While some of these companies are actively seeking ways to reduce their expenses, others are resorting to employee layoffs as a means to save money. In the ever-growing list of firms making workforce reductions, Barclays Bank and Binance.US have recently made the decision to part ways with a portion of their employees.
Barclays Bank to cut more than 450 employees
Barclays is set to reduce its workforce by over 450 employees across various departments. This move is expected to impact mid- to senior-level employees at the company's headquarters, according to GB News.
“We continue to review and adapt our operations based on the ways customers are choosing to interact with us. These changes will enable greater collaboration across our teams, allowing us to continue to improve service for customers and clients,” a Barclays spokesperson said.
During July 2023, Barclays unveiled its Q2 results, reporting a net profit of £1.3 billion, signifying an impressive 24 per cent growth. Barclays' CEO, CS Venkatakrishnan, recently addressed concerns surrounding the bank's workforce strategy. He clarified that the company's plans are consistent with the prevailing trends in the financial industry.
During an interview with CNBC, he stated, "We consistently adjust and adapt our workforce to meet our evolving needs. What's happening at Barclays is not unlike what you observe in other companies."
Barclays is likely to shut down over 1,140 of its bank branches since 2015 by the end of this year, as per media reports. In 2023 alone, the bank is slated to close 180 branches as part of this ongoing trend.
Binance.US reduces staff, CEO Brian Shroder departs
The United States division of the cryptocurrency exchange, Binance.US, has implemented a significant reduction in its workforce, amounting to approximately one-third of its employees, totalling around 100 positions. Alongside this, Brian Shroder, who served as the President and CEO of the company, has also left his role.
A spokesperson from Binance.US verified both the staff layoffs and Brian Shroder's departure in a statement to Cointelegraph. They further explained that these measures were taken to secure the exchange's financial stability, ensuring it has over seven years' worth of financial runway. These steps are aligned with the company's transition towards becoming a cryptocurrency-exclusive exchange.
The spokesperson also confirmed that Norman Reed, the Chief Legal Officer, has taken on the interim role to replace Brian Shroder.
Shroder joined Binance.US in September 2021, and his departure occurs in the midst of increased regulatory scrutiny faced by the company in recent months. Notably, earlier this year, both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) filed lawsuits against Binance, Binance.US, and the exchange's co-founder, Changpeng "CZ" Zhao.
These legal actions alleged various violations, including operating an illegal exchange, selling unregistered securities, violating commodities laws, and mishandling customer funds.