Galaxy Digital (TSX-V:GLXY), the crypto-focused financial services firm run by billionaire investor Michael Novogratz, could cut at least 20% of its workforce according to a report by CoinDesk.
Galaxy didn’t deny the story and in an email told CoinDesk that: “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."
Job losses have been significant in the industry, with the crypto winter forcing some of the biggest companies in the digital-assets sector to curb their plans for growth.
CoinDesk estimated that as of October 14, 11,700 crypto jobs had been lost since the beginning of April.
Crypto exchanges Coinbase, Gemini and Crypto.com as well as New York Digital Investment Group have all made big job cuts.
In August, Galaxy reported a second-quarter net loss of $554.7 million, more than triple the loss in the same period a year before and assets under management dropped 40% from the first quarter.
Novogratz previously said he expected Galaxy to finish the year with more than 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.
Third-quarter results are due on November 9.
Shares were trading 3.4% lower at C$6.40 on Tuesday afternoon.
Contact the author at jeremy@proactiveinvestors.com