Binance cuts employee benefits, Zhao asks not to panic
Date: 2023-07-18 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
Binance, the largest cryptocurrency exchange, cut employee benefits last month due to falling profits and regulatory concerns. This was reported by the Wall Street Journal.
The company told employees that it would stop providing certain benefits starting June 19, including reimbursement for mobile communications, fitness and remote work. However, in the future, the company may revise its policy.
"Given the current market environment and regulatory climate, which unfortunately led to lower profits, we must be more prudent about our costs," it said.
In an attempt to cut costs, Binance also ended its five-year partnership with the Argentine Football Association (AFA) after just a year, citing a breach of contract.
"We regularly evaluate the results of our partnerships around the world, and unfortunately, despite the time and opportunities provided, the AFA has not fully fulfilled its contractual obligations, which is contrary to our business values and our principles of partnership," Binance said.
Binance lays off thousands of people
In addition to cutting bonuses, the cryptocurrency exchange has laid off more than 1,000 people. In total, the platform will reduce staff by about a third. Before the start of mass layoffs, Binance had about 8,000 employees around the world.
According to the insider, the layoffs affected all divisions of Binance, but the customer support service suffered the most. Binance confirmed the layoffs, but did not specify exactly how many employees lost their jobs.
Changpeng Zhao assures that everything is fine
It is noteworthy that the head of the platform, Changpeng Zhao, told employees that Binance is still profitable and has not experienced any consequences from the claim of the US Securities and Exchange Commission (SEC). However, he also said that additional layoffs could occur every three to six months, and that he was not sure if the benefits would be restored.
A Binance spokesperson also said that the company is "reviewing certain products, business units, staff benefits, and policies to ensure that our resources are properly allocated to meet the changing requirements of users and regulators."
