Binance CEO CZ insisted that such reports are aimed at creating fear, doubt, and uncertainty in the crypto industry. He claimed that the revealed numbers of layoffs were exaggerated.
By Temitope Olatunji
Edited by Julia Sakovich
Updated
3 mins read
The recent layoff at Binance affected more than 1,000 employees, which has sparked the interest of many in the crypto community. This downsizing comes at a time when reports indicate that some senior executives have left the company following Binance CEO Changpeng Zhao’s response to the US Department of Justice.
The regulatory issues Binance is facing also suggest it could be going through a difficult time. One of the latest reports around Binance’s case with the SEC is that Eeon, an entity representing Binance customers, seeks compensation from the exchange and the SEC. Eeon claims that Binance customers’ interests have not been adequately protected by the crypto company and the regulators’ legal representatives. The entity wants compensation of 20% daily from the value of funds received from each customer, which amounts to $1,000 daily.
Adam Cochran, founder of Cinneamhain Ventures, shared a series of tweets on Twitter showing that there was an internal email that revealed more about the layoffs. According to his posts, Binance is laying off workers mainly for cost-cutting measures. This information goes against the claim of Binance’s CEO that the company’s reason for downsizing is only a bid to get suitable talent.
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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
Adam challenged the company about why it is claiming the layoff is not about cost-cutting when, on June 19, the company announced that it needed to cut its workers’ extended benefits due to a profit decline caused by the present industry environment and regulatory issues. Binance also noted in the email that it would take other actions in the future in a bid to cut costs, and the reduction in the number of workers looks like another move in that direction.
Changpeng Zhao insists such reports are FUD, aiming to create fear, uncertainty, and doubt in the crypto industry. He claimed that the reported scale of the layoff at Binance was exaggerated. Furthermore, Zhao emphasized that the company is actively hiring, contrary to the perception that the layoffs are solely due to profit decline. The CEO insists that the company is rather looking for individuals who are a better fit for the company. He said:
“As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD. On the bright side, they just can’t resist talking about us. We are still hiring.”
Regarding the resignation of senior executives, the CEO mentioned that the reports about why the executives left are also wrong, and they are only spreading fear, doubt, and uncertainty in the crypto community.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.
