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Layoffs Not The Only Cost-Cutting At Binance As Employee Benefits Follow Suit

Press Releases Crypto News Bitcoinist Layoffs Not The Only Cost-Cutting At Binance As Employee Benefits Follow Suit

In recent developments, Binance, the largest cryptocurrency exchange, has faced a series of challenges, including regulatory scrutiny and legal battles, leading to significant cost-cutting measures. As the company undergoes a federal crackdown in the United States, it has decided to reduce its workforce, resulting in layoffs of over 1,000 employees. However, it appears that layoffs are not the only cost-cutting measures being implemented at Binance.

An internal email leaked by Adam Cochran from Cinneamhain Ventures has shed light on the cost-saving measures being taken by Binance. Cochran in a Twitter thread, questions CEO Changpeng “CZ” Zhao, for not disclosing the true reasons behind the layoffs.

The email reveals that the layoffs were indeed a result of cost reduction and the impact of the “current market environment and regulatory climate.” Furthermore, the email mentions the unfortunate decrease in profit, leading to the cutting of expanded benefits such as mobile phone reimbursements and an 8-year child allowance.

The leaked email also points to the possibility of more cost-cutting measures by the company, saying: “Depending on the situation, we may continue to implement further measures to reduce our expenses.”

Binance’s Transparency And Company Culture Questioned

Concerns have been raised regarding the discrepancies between the company’s statements and the leaked internal email. While CZ referred to the layoff allegations as “FUD” (Fear, Uncertainty, and Doubt), reports indicate that Binance did lay off 1,000 employees, primarily affecting the customer support team.

The news about the exchange’s layoffs has triggered various reactions within the crypto community. Eeon, an organization representing Binance customers, has demanded compensation from both Binance and the United States Securities and Exchange Commission (SEC).

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Author: Scott Matherson

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