The market downturn has reportedly forced digital assets services firm Galaxy Digital to plan a reduction of staff by as much as 20%, said media reports. The New York-based company founded by billionaire Michael Novogratz has about 375 employees.
Although the final number of the positions to be eliminated has not been determined yet, sources familiar with the development said it could be in the range of 15% to 20%, which works out to be 50 to 75 people.
Reacting to media queries, Michael Wursthorn, a Galaxy spokesperson, said, “We are always considering optimal team structure and strategy and will share future plans when finalized.”
Faced with the crypto winter, Galaxy reported a $554.7 million net loss for the second quarter, which is over three times higher compared to the same period of the previous financial year. It also saw its assets under management (AUM) fall 40%, compared to the first quarter.
Following the onset of crypto winter in April, over 11,000 jobs have been lost in the digital assets market. Faced with a steep decline in prices and mounting losses, crypto firms that had increased the headcount during the 2021 bull run had to reduce the workforce.
So far, Coinbase has laid off nearly 1,100 employees, CryptoCom 260, and Bybit an undisclosed number of people. Among other leading crypto firms that went for job cuts include Gemini, which eliminated 10% of positions. Battling falling trade volume, India-focused crypto exchange WazirX slashed its workforce by 40% in October.
