New Cost-Cutting Strategies: Amber Breaks Chelsea Sponsorship

• Amber Group has decided to cut off its partnership with Chelsea FC.
• The current move is a part of retrenchment after the fall of FTX.
• The company has also decided to reduce expenses by many means including relocating to a smaller office.

The leading digital asset trader, Amber Group, has decided to cut off ties and terminate the sponsorship with Chelsea FC, the football club, as a means to retrench expenses and thereby withstand the market collapse.

Earlier in May 2022, Chelsea FC signed a partnership with Amber Group, to become their Official Sleeve Partner from 2022 to 2023. Amber’s partnership was the first crypto-based sponsor for Chelsea FC with the aim to “introduce WhaleFin to football fans around the world”.

Significantly, the current move by Amber is the aftermath of the bankruptcy of FTX and the sister trader Alameda Research, indicating that since the fall, there had been a decline in the outlook for digital assets.

Consequently, the platform decided to implement retrenchment, as part of a major cost-cutting strategy, as declared by an anonymous person who was reluctant to disclose personal details. The person added that the Singapore-based crypto firm, whose backers include Temasek Holdings Pte and Sequoia China, would reduce the number of employees to 400 from the current 700, as part of limiting expenses.

In addition, Amber has planned to relocate to a cheaper office in Hong Kong and shut off some of the smaller offices in other regions. The remaining employees would be supposedly permitted to work from home.

After closing the deals with Chelsea, Amber is planning to focus on large institutions, family offices, and wealthy individuals. Also, the number of customers would be reduced from the hundreds of thousands to about just 100 after the exit from the retail sector.