Binance Faces Allegations of Deceptive Layoffs and Employee Benefit Cuts

• Veteran crypto analyst accuses Binance of deceptive layoffs and benefit cuts.
• Internal email reveals sudden cut of extended benefits during Bitcoin rally, raising suspicions.
• Cochran questions where Binance’s $10B-$12B revenue was being allocated.

In another viral Twitter thread, Adam Cochran, a veteran crypto analyst, accused Binance of deceptive practices related to their recent layoffs and sudden cut of extended benefits. Cochran’s thread questioned the company’s motives, which Binance claimed were not solely based on cost-cutting measures.

According to Cochran’s tweets, he alleges that Binance has been laying off employees without notice, freezing internal recruitment while publicly stating they were still hiring. The analyst also shared a screenshot of an internal email that showed Binance had cut extended benefits, stating that the company needed to reduce expenses due to difficult times.

The email shows that Binance reportedly announced a sudden cut of extended benefits for all employees, citing “a decline in profit” as the reason. However, Cochran questioned this explanation, pointing out that the move occurred during a bullish market trend and on the very day of one of the biggest Bitcoin rallies of the year.

Cochran specifically pointed out that some of the benefits cut, such as “Mobile Phone reimbursement,” were relatively low-cost programs. He calculated that even if employees bought a new iPhone every year using the reimbursement, the expense would amount to around $8 million per year, a small fraction of Binance’s overall revenue.

The analyst further delved into the average salaries of laid-off employees, noting that they were well below the US wage standards. While comparing Binance to other major players in the crypto industry, like Coinbase, Cochran stated that Binance’s cost-cutting measures seemed unjustified especially due to its significantly higher revenue compared to Coinbase.

Based on public API numbers, Cochran estimated Binance’s potential yearly earnings to be around $10 to $12 billion, largely paid out in the native cryptocurrency BNB. However, he questioned where this substantial revenue was being allocated, as it seemingly wasn’t going toward staff wages, buybacks, or HR programs.

The alleged treatment of Binance employees also raised concerns. According to Cochran, employees were not allowed to publicly disclose that they worked for Binance, creating an environment of secrecy. However, they allegedly engaged in discussions on internal channels, leading to speculations about the reasons behind the company’s actions.

In response to Cochran’s claims, some Twitter users defend Binance’s actions, stating that cutting costs, firing people, and shutting down operations in certain countries could be seen as a prudent business decision.