Crypto Exchange Binance Hits Pause on Certain Employee Perks, Cites Decline in Profits: Report

Top global crypto exchange Binance is reportedly eliminating some employee benefits due to a decrease in profits.

Anonymous former company employees told the Wall Street Journal that the exchange sent out an email last month announcing it was putting a stop to work-from-home expenses and reimbursements for mobile phones and fitness, among other benefits.

The WSJ also viewed a message from Binance’s internal messenger that confirmed those details. 

Said the message,

“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 has also let go of more than 1,000 employees in recent weeks, according to a separate report from the WSJ.

A spokesperson for the exchange confirmed the existence of layoffs to The Daily Hodl in an email last week but did not specify a number.

“Over the last 6 years, we have grown from 30 to a team of almost 8,000 across the globe. 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 rightsizing, but rather, 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.”

Binance chief executive Changpeng Zhao tweeted a laughing emoji after a crypto trader shared the layoffs story on Twitter.

They can't stop talking about us… ?

— CZ ? BNB (@cz_binance) July 14, 2023

The CEO also reportedly told staff at a company meeting on Friday that the exchange was still profitable and hadn’t been hurt economically by recent US regulatory actions, according to employees at the meeting who spoke with the WSJ.

Zhao, however, also reportedly mentioned the possibility of future layoffs and said he wasn’t certain if the axed benefits would ever be brought back.

In March, the Commodities Future Trading Commission (CFTC) charged Binance and Zhao with a long list of regulatory violations.

In early June, the U.S. Securities and Exchange Commission (SEC) sued the exchange and its CEO, alleging the firm broke securities laws. Binance called the SEC’s lawsuit “misguided.”

Later that month, Democratic Senators Elizabeth Warren of Massachusetts and Chris Van Hollen of Maryland accused the crypto exchange of lying to Congress after lawmakers questioned company officials about its business practices. The senators asked the U.S. Department of Justice (DOJ) to investigate Binance. 

Generated Image: Midjourney