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>>OKX Cuts Staff: Targeted Workforce Trim in Response to Institutional Business Hurdles

OKX Cuts Staff: Targeted Workforce Trim in Response to Institutional Business Hurdles

crypthub

about 15 hours ago

Workforce Reduction

OKX cut roughly one‑third of its institutional sales staff in December 2024, a move confirmed by the exchange but without exact numbers disclosed. The layoffs follow months of underperformance in its institutional services, which traditionally account for a sizeable revenue share. This trimming mirrors similar cuts at Coinbase and Binance as the sector seeks greater operational efficiency.

Institutional Market Challenges

Regulatory uncertainty, higher compliance costs, and slower adoption have limited institutional crypto growth, which fell about 15% YoY in 2024. Institutional clients demand lower fees, robust security, and clear legal frameworks, driving up customer acquisition costs compared with retail users. OKX retains a strong retail base, especially in Asia, and has secured licenses in Dubai and Malta to support its broader strategy.

Future Outlook

Despite the reductions, OKX will keep its institutional portal active and is investing in new offerings such as a 2025 staking platform and expanded Web3 services. The exchange aims to focus resources on high‑potential markets and differentiated products to stay competitive with traditional finance entrants. These steps reflect the industry's shift toward sustainable profitability and deeper institutional participation.