Bloomberg reported Tuesday that the blockchain-focused financial services company Galaxy Digital Holdings plans to reduce one-fifth (20%) of its workforce due to the intense market crisis.
Galaxy Digital Could Reduce 15% of its Headcount
According to the report, the firm is still considering the move, potentially leading to a 15% reduction or going as high as 20% of its entire global workforce.
Earlier this year, the New York-based Fintech company disclosed it had about 375 employees worldwide during its second quarter financial earnings report.
The disclosure means the firm would likely close up around 75 positions in the company if it proceeds with the plan.
Despite the current winter, which caused an adverse chain reaction in the industry, forcing some thriving companies such as Three Arrows Capital (3AC) and Voyager Digital to go bankrupt, Galaxy Digital had remained unaffected by the market condition except for its poor Q2 reports.
The blockchain financial services firm incurred a net loss of $554.7 million in August, and its set to report its third-quarter earnings next week.
Galaxy Digital Focused on Building
The company’s spokesperson Michael Wursthorn disclosed that Galaxy Digital is focused on building for the future of the ecosystem.
“We always consider optimal team structure and strategy and will share future plans when finalized. 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,” Wursthorn said.
The Fintech firm, launched in 2008 by American billionaire Michael Edward Novogratz, contributed significantly to the ecosystem’s growth and has participated in various financing rounds to help drive adoption to the asset class.
In February, the company participated in a funding round conducted by the Ethereum scaling solution, Polygon, to raise $450 million to promote the adoption of its ecosystem.
Meanwhile, Galaxy Digital has been one of many to lay off workers in recent months. The crypto winter, which started at the beginning of this year, has resulted in the loss of jobs across the industry.
Companies like Robinhood, Gemini, Coinbase, CryptoCom, BlockFi, Bitpanda, Blockchain.com, and Bybit have reduced many of their workforces, respectively, within the past few months.
