Fidelity-Backed OSL Cuts Headcount as Crypto Companies Retrench

Joanna Ossinger, Bloomberg News

Mining rigs in a cryptocurrency mining farm in Arnhem, Netherlands, on Thursday, Nov. 10, 2022. FTX cryptocurrency exchange rattled the financial world this week when a crisis of investor confidence triggered a run, forcing the company to scramble for a buyer or bailout to avoid collapse. Photographer: Valeria Mongelli/Bloomberg , Bloomberg

(Bloomberg) -- OSL, a digital-assets platform backed by Fidelity International, is cutting costs by about a third as turbulence in crypto markets continues to reverberate throughout the industry.

The decision to cut costs was made in response to “to current market conditions” and included “headcount reduction,” Hugh Madden, chief executive officer of OSL’s parent company BC Technology Group said in a statement on Tuesday. Hong Kong-based OSL declined to disclose how many positions it cut.

The job cuts make OSL the latest cryptocurrency firm to slash headcount as the industry continues to grapple with asset prices that remain far below their peak in late 2021. The impact of the “crypto winter” was exacerbated the sudden collapse of FTX, one of the biggest exchanges, in November.

Crypto.com laid off 20% of its global workforce last week after a previous round of cuts in the middle of last year while Coinbase Global Inc. axed around 950 jobs, or roughly 20% of its workforce.

OSL offers trading and custody of digital assets, as well as software solutions for institutional investors. Fidelity International didn’t immediately respond to requests for comment.

Read more: Crypto Industry’s Job Cuts Top 1,600 in First Weeks of Year

--With assistance from Suvashree Ghosh.