Leading digital asset company Amber Group is downsizing its workforce by 40%, ceasing its retail operations, and ending its sponsorship deal with English football club Chelsea FC amid extreme market conditions, Bloomberg reported Friday, citing a person familiar with the matter.
The report said the move was part of a “major cost-cutting strategy.”
The digital asset trading firm, whose backers include Temasek Holdings and Sequoia China, will reduce its headcount to nearly 400 from the 700 employees it houses. The report stated that the headcount at the firm at one time peaked at around 1,100.
Amber Group to End Chelsea Sponsorship
At the same time, Amber will also be ending its sponsorship deal with English top-flight team Chelsea FC.
Earlier this year, the trading firm landed a $20 million-a-year deal with Chelsea to become its official sleeve partner during the 2022-2023 season. The latest report revealed that Amber is now going through the legal process for terminating the agreement.
The report revealed that as part of this cost-cutting strategy, Amber would also be closing down its retail services and focusing on large institutions, family offices, and wealthy individuals.
According to the report, the decision to exit from the retail sector will result in Amber’s customer numbers falling to 100 from hundreds of thousands.
Per the report, Amber is planning to migrate to cheaper office space in Hong Kong, while smaller offices in other jurisdictions will likely be closed down, with the remaining workers allowed to work from home.
It was also recently reported that the company put a $100 million fundraising on hold and suspended its expansion plans.
Surviving the Bear Market
Meanwhile, Amber has joined a growing list of industry firms taking drastic measures, including reducing headcount to cope with the bear market worsened by the recent crypto exchange FTX implosion.
Just recently, leading cryptocurrency exchange Kraken laid off 30% of its global workforce to survive the current market conditions. Australian crypto exchange Swyftx also recently reduced a significant part of its workforce.
