Binance cuts back on employee benefits, citing ‘decline in profit’: Report
July 17, 2023Global cryptocurrency exchange Binance reportedly cut back on certain benefits to its employees in June amid reevaluation efforts at the firm.
According to a July 17 report from The Wall Street Journal, Binance said it had stopped offering reimbursement to employees for certain expenses, including the use of mobile phones, fitness and working from home. The crypto exchange reportedly cited the “current market environment and regulatory climate,” which led to a decline in profit, suggesting more cost-cutting measures may be needed.
The report followed one suggesting Binance had let go of more than 1,000 people in a matter of weeks. The crypto firm had roughly 8,000 people prior to its six-year anniversary on July 14. A Binance spokesperson told Cointelegraph the firm would consider scaling back on “certain products, business units, staff benefits and policies” in response to business and regulatory concerns.
Related: Binance completes integration of Bitcoin Lightning Network
Binance reportedly did not specifically cite the “regulatory climate” of the United States, where the firm faces lawsuits filed by both the country’s Securities and Exchange Commission and Commodity Futures Trading Commission. The crypto exchange and CEO Changpeng Zhao were both targeted in the suits for allegedly offering unregistered securities. Binance has labeled the legal action as an example of regulation by enforcement.
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