Binance Slashes Employee Perks, Citing Tough Times
- Binance has fired up to 1,000 employees, which is one-third of its previous workforce.
- The crypto exchange has been hit with a flurry of lawsuits from regulators around the world.
- Changpeng Zhao told employees in a recent meeting that the company could likely lay off staff every three to six months.
Life at the cryptocurrency exchange Binance just got a little more difficult for its employees, as a new Wall Street Journal report claims that the exchange has slashed some employee bonuses due to a decline in profit.
The report revealed that Binance had stopped providing compensation to employees for a number of expenses, including their use of mobile phones, exercise, and the cost of working from home. The cryptocurrency exchange reportedly blamed a loss in profit on the “current market environment and regulatory climate.”
An internal message from the exchange read,
Considering the current market environment and regulatory climate, which have unfortunately led to a decline in profit, we have to be more prudent with our spending.
Interestingly, sources claim that Binance’s CEO informed the company’s employees in a meeting on Friday that the exchange was still thriving and had not been affected by the recent lawsuit brought against it by the U.S. Securities and Exchange Commission. However, he did mention that there might be further layoffs every three to six months and that he was unsure of whether or when the reduced employee perks would return.
Today’s news comes days after reports emerged that Binance laid off more than 1,000 employees due to mounting legal and regulatory issues. However, Zhao claims the reported figures are false and that the company still has plans to hire.
A Binance spokesperson also claimed that the recent changes at the exchange were in preparation for the coming bull run and a part of the company’s attempt to reallocate its resources.
According to the spokesperson,
As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of right-sizing but rather of 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.
Interestingly, three senior executives recently left the company over Zhao’s handling of an ongoing investigation by the Department of Justice. Many believe that these key departures will make it harder for Binance to defend itself.