Novogratz's Galaxy Digital may nix 20% of its workforce: Bloomberg

Quick Take

  • Mike Novogratz’s firm could lay off up to one-fifth of its staff, Bloomberg reported. 
  • October, which marked six months of the crypto downturn, has seen plenty of staff cuts across the industry.

Galaxy Digital may cut as many as 75 people from its ranks, according to reports.

Mike Novogratz's firm could lay off 15% to 20% of its staff, Bloomberg reported, citing people familiar. The firm is constantly evaluating its "optimal team structure and strategy," Michael Wursthorn, a Galaxy spokesperson, told Bloomberg. Shares are down almost 3.5% amid the news.

October marked six months into the crypto downturn,  during which time many firms have culled jobs to stabilize their businesses. Coinbase laid off around 1,100 employees, BlockFi cut over 150 people and let around 260 people go. Last month, market maker GSR also laid off 10% of its staff. The moves come amid economic headwinds that have worsened, with expanding inflation in the U.S and central banks around the world hiking interest rates seemingly nonstop. 

"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. 

Galaxy Digital's stock — which trades on the Toronto Stock Exchange (TSX) — was trading at CAD$6.44 ($4.70) at the time of writing, according to data via TradingView. 

The firm's billionaire CEO has faced recent scrutiny, particularly around his support of the Terra blockchain. "My tattoo will be a constant reminder that venture investing requires humility," Novogratz said in a shareholder letter in May, alluding to his now famous luna tattoo

Galaxy Digital didn't immediately respond to requests for comment from The Block. 

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