Amber Group Cancels Staff Bonuses For 2022
According to an internal memo, Amber Group, a digital asset trading and lending platform, told employees this week that it is scrapping performance-based bonuses for 2022, Bloomberg reports.
Due to slow business development and market volatility, the Singapore-based company informed staff this week that performance bonuses will be phased out in 2022.
Amber Group has implemented a number of cost-cutting measures, including layoffs and wage reduction, since June. Some management staff has committed to forego all or part of their pay until the market shows clear indications of recovery.
In an interview with Bloomberg, Amber Group Chief Executive Michael Wu acknowledges the withdrawal of incentives and executive pay cutbacks, adding that the company will continue to decrease expenses.
“Even before the FTX crash, we were preparing for a potentially protracted crypto winter,” he said.
Amber said that fewer than 10% of its trading money is still stranded on FTX, and management has attempted to reassure the public that the company’s day-to-day has not been interested.
According to Bloomberg, the company, whose investors include Temasek Holdings Pte and Sequoia China, wants to reduce its headcount to less than 400 from a peak of over 1,100 earlier this year.
It has stopped a $100 million investment round and is canceling a sponsorship agreement with Chelsea FC, which was part of a recent sports-deal craze among crypto high-fliers.
According to two former workers recently fired off, Amber Group employed hundreds of people at its peak. They claim to have inked contracts with mainland enterprises unrelated to Amber’s primary Singapore operation. During layoffs, these staff was instructed to leave their Shenzhen offices and work from home.
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