Adam Cochran published an internal email showing that the Binance exchange is taking cost-cutting measures. Some argue that this was the reason behind the recent layoffs, which contradicted public statements by executives. Here are the details…
Binance takes cost-cutting measures
Adam Cochran of Cinneamhain Ventures shared a Twitter thread on July 17, revealing an internal email from Binance. The email shows Binance’s real reasons behind the layoffs, which CEO Changpeng Zhao claims is all about searching for the right talent. Cochran’s post asks Zhao why they didn’t explain why the layoffs were due to cost cuts and the “fall in profits” as stated in the email. The email also refers to the “current market environment and regulatory climate”. There is also a section where it is stated that as a result of this, “unfortunately, there is a decrease in profits”.
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Hey @cz_binance if your layoffs weren't about cost cutting, why on June 19th did you announce on WEA that you suddenly cut extended benefits for all employees, & *tell them* it was because of "a decline in profit"?
Not exactly trust building to lie about this… pic.twitter.com/2MvP1ZPKEG
— Adam Cochran (adamscochran.eth) (@adamscochran) July 16, 2023
Therefore, extended benefits such as cell phone reimbursement and 8-year child allowance will be cut, as explained in the email. Binance continues to say that it may continue to take further measures to reduce expenses. The email came while Binance was being investigated by the Department of Justice (DOJ). He has also been indicted by the United States Securities and Exchange Commission (SEC) and the Commodity and Futures Trading Commission (CFTC) for various reasons.
Zhao called the dismissal allegations “FUD”
Again, although there is no definitive, official statement, some reports have drawn attention. As we reported on cryptokoin.com, according to them, Binance laid off 1000 of its employees while celebrating its sixth anniversary last week. The most impacted was the customer support team. A spokesperson said this was because of a desire to maintain “the right talent and expertise in critical roles.”
https://twitter.com/cz_binance/status/1679951762906595330
Zhao said, “We are constantly saying goodbye to people who are not suitable for the company. “Many of them are great people, but they may not fit into our high-performing, unique culture.” He also noted that the exchange is still recruiting. He claimed that the media’s figures were FUD and that involuntary terminations occurred at every company. Zhao also claimed that the departure of some senior executives was also FUD. There were also developments regarding the lawsuit between Binance and the SEC.
An organization called Eeon, which represents Binance customers, is seeking compensation from Binance and the SEC. Eeon claims the SEC and Binance’s lawyers failed to adequately represent clients’ interests. The organization demands 20% of the daily value of retained funds per client, or $1,000 per day. The penalty will be split equally between Binance and the SEC, at $500 each. Binance saw $8 billion in outflows after the lawsuit was filed.
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