Fidelity International-backed OSL, a Hong Kong-based exchange for digital assets, is slashing around a third of its expenses following months of turmoil in the cryptocurrency market.
That includes staff layoffs, though the company did not specify how much of its workforce was being dismissed. OSL offers software solutions, cryptocurrency trading, and custody services to institutional clients.
According to Bloomberg, OSL’s parent entity BC Technology Group CEO Hugh Madden stated in a statement on Tuesday that the exchange reduced costs due to “current market conditions,” which included a “headcount cut.”
OSL is supported by Fidelity, a major asset management company that has introduced a number of products for investing in Bitcoin and Ethereum. Fidelity introduced a product last year that allowed its customers to add Bitcoin to their retirement plans, making up to 20% of their portfolio.
Massive Crypto layoffs
OSL is not the only exchange to implement such policies. Most recently Blockchain.com announced that it would lay off 110 individuals, or 28% of its workforce. The move represents the company’s second significant layoff. The business let off 25% of its workforce in July 2022, claiming a harsh bear market. Top executives also saw wage reductions, and they provided a 4–12 week benefit package to disgruntled employees.
The business was responding to the considerable challenges it had encountered in 2022. They made the decision to cut operating expenses and improve the products they were providing to clients.
On January 6, CEO John Crain announced that the number of staff at the non-fungible token (NFT) exchange SuperRare has reduced by 30%. Adding that the firm is giving in to the effects of the prolonged crypto winter that has frozen various market sectors.
Throughout the second half of 2022, the so-called “crypto winter” raged, bringing with it a sharp decline in the value of crypto assets as well as numerous high-profile bankruptcies. The most notable, and still having an impact on the crypto industry, was the rival exchange FTX’s collapse in November.