Amber Group says it’s ‘business as usual’ amid reports of more layoffs

Digital asset platform Amber Group is reassuring clients and stakeholders that it is “business as usual” at the firm following reports that the company laid off staff. 

The Hong Kong-based firm laid off “hundreds” of employees in this latest round, according to Wu Blockchain. The company also cut 10% of its workforce in September, citing the bear market.

“Weathering through market cycles, we have to constantly adjust and pivot our business strategies, product offerings, and, as a result, internal teams and functions,” Amber Group said in a statement.

Chinese-language social media posts have raised concerns that former employees have not received agreed-upon compensation following the layoffs. Employees also said they have had difficulties contacting senior management, including CEO Michael Wu. Amber Group did not respond to a request from The Block for comment.

To add to the confusion, staff based in China were also told not to come back to offices due to the coronavirus pandemic in an email on Dec. 5.

One Twitter user asked the company’s head of business development Annabelle Huang if their funds were safe.

Withdrawals open 

“It is. We continue to operate business as usual. If you have any concerns, withdrawals are open as usual,” she responded.

Valued at $3 billion in February during a $200 million raise, Amber Group failed to raise again at a higher valuation between $5 billion and $8 billion due to the market downturn. Amber Group reverted to its older valuation in November as it sought to raise $100 million, according to reports.

Shortly after, the firm revealed it had been an active trading participant on FTX, though less than 10% of its total trading capital was locked up on the exchange. Amber Group claimed no exposure to FTX’s native token FTT or sister trading firm Alameda Research.

The company has also had to contend with the death of one of its co-founders. Tiantian Kullander, known as TT, died in his sleep at the age of 30 on Nov. 23.

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