Binance's Profit Dropped | Cut Staff & Benefits

Binance, the biggest cryptocurrency exchange, has reportedly undergone a significant downsizing effort resulting in the termination of more than 1,000 employees, further reducing its global workforce from 8,000. The Wall Street Journal (WSJ) revealed this massive employee cut, citing an anonymous insider source.

Former employees interviewed by WSJ disclosed that additional staff members, particularly in the customer-service sector, were let go this week across various markets worldwide. In India alone, approximately 40 employees in this category were dismissed, according to the report.

This downsizing comes amidst mounting regulatory pressure on the exchange, which has recently experienced the departure of several high-ranking executives. Notably, over 50 employees from the exchange's independent US subsidiary have already been let go.

In response to the departure of Patrick Hillmann, the former Chief Strategy Officer, and other key executives, Binance CEO Changpeng 'CZ' Zhao dismissed speculations of troubles at the exchange, highlighting that turnover is common in every company.

Moreover, Binance has announced that it will no longer provide mobile-phone reimbursement, fitness reimbursement, and other staff-related bonuses. The exchange attributed this decision to the current market environment and regulatory climate, negatively impacting its profits. Binance expressed the need for more cautious spending.

An internal email from Binance detailing cost-cutting measures was shared earlier today by Adam Cochran, a partner at Cinneamhain Ventures.

Reportedly, CEO Changpeng Zhao also informed employees that the firm might undergo further layoffs every three to six months, contrasting with some of his previous public statements. As recently as July 14, CZ tweeted that Binance was actively hiring and striving to increase its talent density.

This news emerges shortly after Binance's recent termination of over 1,000 employees. Additionally, numerous top executives departed from their roles at the exchange, citing personal reasons.

A representative from Binance informed CryptoSlate that the company is reassessing its talent and expertise in critical positions, including product offerings, business units, staff benefits, and policies. The objective is to ensure that resources are allocated appropriately to address the evolving demands of users and regulators.

Before the layoffs began, Binance had approximately 8,000 employees across the globe.

Furthermore, Binance continues to face regulatory challenges in multiple jurisdictions, including Europe, where it has withdrawn from various markets due to the inability to secure necessary licenses and approvals.

In the United States, the exchange is confronted with lawsuits from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) regarding its operations within the country.

While Binance maintains its commitment to regulatory compliance, its market dominance has experienced a decline as of this moment.