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Galaxy Digital has been amassing losses before announcing its global workforce layoffs.
Amid the storm of employee cuts across the crypto industry, crypto finance firm Galaxy Digital has also announced plans to reduce its workforce. The company has joined the long list of crypto companies like Coinbase (NASDAQ: COIN), Blockchain.com, and more, which have let go of certain percentages of their staff.
Galaxy Digital Plans to Reduce Workforce
Four people familiar with the job cut-off situation at Galaxy Digital revealed that the Michael Novogratz-managed company is letting go of at least 20% of its global workforce. This means that the layoff will affect employees of financial services and investment management company across the world.
A Galaxy spokesman spoke about the matter, noting that the industry is still struggling. He 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.”
Galaxy Digital has been amassing losses before announcing its global workforce layoffs. The company reported a net loss of $554.7 million during Q2, representing a three times loss YoY. Its net loss for the second quarter of last year was $182.9 billion. The firm associated the declines with the persistent turmoil in the crypto market and investments in its trading business. Investments fell 25% during the quarter as several cryptocurrencies shrank. At the time, Novogratz said he hoped it would be the worst quarter the company would ever have. Furthermore, the CEO expected Galaxy Digital to end 2022 with more than 400 employees. It had about 375 at the time. According to Novogratz, Galaxy is a “growth company” investing in people, products, and talents.
“While the crypto landscape is less certain than it was, my confidence of where it’s going in the medium-term hasn’t waned a bit.”
Workers Layoffs across Crypto Industry
Back in July, Blockchain.com dismissed 25% of its workforce to survive the bear market. Affected workers span across different locations, including 445 in Argentina, 26% in the US, and 26% in the UK. In total, 150 people were forced to leave the company. However, the firm promised severance pay to the victims. Not only Galaxy Digital and Blockchain.com reduced their workforce. BlockFi, Gemini, Coinbase, and more also lowered their headcounts. BlockFi let go of 20% of its workers, approximating around 170 people. Also, the Winklevoss twins complained of “turbulent market conditions that are likely to persist for some time.” Therefore, it discharged 10% of employees. The same goes with Coinbase, which lowered full-time jobs in preparation for crypto winter and recession.