Binance cuts employee benefits; hints at more layoffs as profits decline Binance cuts employee benefits; hints at more layoffs as profits decline
Binance CEO Changpeng Zhao tweeted that the exchange was still hiring despite making contradicting statements to employees.
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Updated: Jul. 17, 2023 at 8:23 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto exchange Binance has reportedly cut employee benefits effective June 19, citing a declining profit margin, Wall Street Journal reported on July 17.
The exchange stated that its workers would no longer get mobile-phone reimbursement, fitness reimbursement, and other staff-related bonuses. WSJ reported that Binance attributed its decision to the “current market environment and regulatory climate,” which has negatively impacted its profits. The exchange further added that it had to “be more prudent” with its spending.
Earlier today, Adam Cochran, Cinneamhain Ventures partner, shared an internal email from Binance detailing the cost-cutting measures.
Binance could still cut staff
According to the report, Binance CEO Changpeng Zhao also told employees that the firm could have additional layoffs every three to six months.
This starkly contrasts with some of his publicly made statements. As of July 14, CZ tweeted that Binance was still hiring, adding that the firm “continuously strive[s] to increase talent density.”
Meanwhile, the news is coming on the heels of Binance sacking more than 1,000 employees recently. Several top executives also left their roles at the exchange, citing personal reasons.
A Binance representative told CryptoSlate that it was “reevaluating whether we have the right talent and expertise in critical roles. This will include looking at certain products, business units, staff benefits, and policies to ensure our resources are allocated properly to reflect the evolving demands of users and regulators.”
The exchange said it had around 8,000 employees around the globe before the layoffs began.
Binance regulatory struggles not abetting
Meanwhile, Binance regulatory struggles have continued unabated in multiple jurisdictions, including Europe, where it has exited different markets due to its failure to secure licenses and approvals.
In the United States, the exchange has faced lawsuits from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) over its operation within the country.
While the exchange has maintained that it would strive to remain regulatory compliant, its market dominance has declined.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
