According to reports, crypto lending firm Amber Group is planning to cut 40% of its workforce. The corporation is also reportedly eliminating retail operations and canceling a sponsorship arrangement with Chelsea Football Club.
According to a person with knowledge of the situation, the decisions are a key component of a cost-cutting approach. The person in question asked to remain anonymous. Amber is set to reduce its headcount from roughly 700 to less than 400. The Singapore-based firm is backed by Temasek Holdings Pte and Sequoia China.
Amber will reportedly concentrate on large institutions, family offices, and affluent people. Additionally, exit from the retail sector will result in the number of customers decreasing from thousands to roughly 100. The actions taken by Amber are the most recent sign of the deteriorating prognosis for cryptocurrencies in the wake of the FTX failure.
The business recently denied online rumors that it might be the final domino to fall following a string of explosions in the crypto industry.
The crypto firm terminates Chelsea FC sponsorship
Over the last year, several cryptocurrency firms began sponsoring sports teams. Amber and Chelsea FC announced an official partnership in May. As part of the deal, the team’s jersey sleeves would display the WhaleFin logo. According to reports, the sponsorship agreement is worth $25 million a year. However, according to the source, Amber is going through the legal procedure to cancel the contract.
Amber is the latest crypto firm to face the harshness of the ongoing winter. Former traders from Morgan Stanley were among the group of founders who started the company in 2018. In February, the company raised $200 million at a $3 billion value. Tiantian Kullander, a co-founder of the business, died abruptly in his sleep in November at the age of 30.
At press time, the global cryptocurrency market stood at $895 Billion, up by 2% in the last 24 hours.