Binance Slashed Employee Benefits Due To Declining Profits: WSJ
- A report by the Wall Street Journal stated that Binance slashed employee benefits last month.
- The crypto exchange cited declining profits for cutting back benefits including work-from-home expenses.
- CEO Changpeng Zhao revealed in a meeting last week that the company was still profitable.
- The crypto exchange reportedly laid off more than 1,000 employees in recent weeks.
Binance reportedly slashed employee benefits last month due to dwindling profits amid legal and regulatory trouble. The reduced benefits took effect on June 19, 2023, when the world’s largest crypto exchange cut back on several benefits, including fitness reimbursement. The crypto giant also indicated that more cost-cutting measures could be adopted in the future.
Binance CEO Changpeng Zhao Says Company Is Still Profitable
According to a report by The Wall Street Journal, Binance used its internal messenger to inform its employees about the slashing of benefits, which affected mobile-phone reimbursements and work-from-home expenses, among other benefits. The crypto exchange cited declining profits for cutting back employee benefits. A Binance spokesperson stated that the company was reevaluating certain products, business units, and staff benefits to ensure that the company’s resources were being deployed properly.
During a company meeting on July 14, 2023, co-founder and CEO Changpeng Zhao told his employees that the company was still profitable. He added that the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) had no impact on the company’s operations. As for the employee benefits, Zhao stated that he wasn’t sure when they would be reinstated.
Considering the current market environment and regulatory climate that has unfortunately led to a decline in profit, we have to be more prudent with our spending.”
Binance’s internal message to employees
News of the slashing of employee benefits comes just days after WSJ reported that Binance had fired more than 1,000 employees in recent weeks. Former employees told the Journal that several hundred additional customer-service personnel were laid off by the crypto exchange last week. Changpeng Zhao revealed in the company meeting that there could be additional layoffs every three to six months.