Crypto Finance Firm Galaxy Digital to Cut One-Fifth of Workforce: Sources
Galaxy Digital (GLXY), the crypto-focused financial services firm run by Michael Novogratz, plans to cut at least 20% of its global workforce, according to four people familiar with the matter.
"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," a Galaxy spokesman told CoinDesk via email.
The crypto winter has cast a shadow over the industry, forcing some of the biggest actors in the digital assets sector to curb their growth ambitions. CoinDesk estimates that around 11,700 crypto jobs had been lost as of Oct. 14, 2022, based on media reports and press releases. Firms that have made significant job cuts include Coinbase (COIN), Gemini, NYDIG and Crypto.com.
Galaxy reported a second-quarter net loss of $554.7 million in August, more than triple the loss of the year-earlier quarter. Company assets under management dropped 40% from the first quarter.
In terms of headcount, CEO Novogratz has said that he expected Galaxy to finish the year with over 400 employees, compared with fewer than 300 at the start of 2022.
“We are a growth company,” Novogratz said on the second-quarter earnings call. Galaxy is investing in people, products, and engineering teams not only for the near term but for years to come, he said.
The company is due to report third-quarter results before the market opens on Wednesday, Nov. 9.
Galaxy stock has dropped 80% in the past year. The shares were 2% higher early Tuesday.
UPDATE (Nov. 1, 14:20): Adds shares performance in last paragraph.