Crypto financial service provider Galaxy Digital Holdings is considering laying off 20% of its workforce amidst the crypto winter.
The shadow cast by the market downtrend has forced many firms in the crypto ecosystem to succumb to letting go of some of their employees and eventually, changing their growth plans. Galaxy Digital which was founded by billionaire investor Michael Novogratz is the latest hit of these crypto firms.
No conclusion about the retrenchment exercise has been made yet but the firm thinks the layoff percentage will fall between 15-20% finally. Trailing this announcement, Galaxy Digital shares dropped by about 3.5% and in this past year alone, the shares have seen up to 80% fall. A Galaxy spokesperson identified as Michael Wursthorn said
“While our industry continues to face macroeconomic headwinds, Galaxy remains focused on building for the future state of institutional adoption and on enhancing long-term shareholder value. We are always considering optimal team structure and strategy and will share future plans when finalized.”
More Job Cutbacks Amid Crypto Winter
At the end of Q2, the company had a record of 375 employees globally and with this layoff consideration, it is likely that 75 employees will lose their jobs, leaving the New York-based firm with only 300 employees. The company which announced in August that it was interested in more mergers and acquisitions may not have been unaware of the consequences of the harsh market.
Coupled with the fact that Novogratz said in an earlier interview that he anticipates “a rough few months of markets that are pricing in a tremendous amount of bearishness”.
Most of the firm’s shortcomings were attributed to unrealized losses from digital assets and investments in its trading businesses.
Significantly, the founder of Galaxy Digital was a profound backer of Do Kwon’s Terraform Labs which is responsible for the Terra and LUNA tokens that collapsed and left the crypto industry in turmoil with over $2 trillion worth of digital assets in losses.
Presently, NYDIG has laid off 33% of its workforce while trying to rebalance its operating cost. Indian crypto exchange giant WazirX has sent 40% of its workforce packing and Snapchat has closed down its Web3.0 division with a 20% layoff.