Winter has not yet concluded in the crypto market. Firms in the space have been finding it difficult to sustain. In the initial half of the year, a host of big names succumbed to liquidations or declared bankruptcy. Others remaining in the space have been trying to slash costs to strike a balance.
Laying off staff has been a go-to route for top companies this winter. The said spree is currently on in full swing. In just over the past half a day, three large crypto firms—Galaxy Digital, BitMEX, and DCG—have either reduced or plan to reduce their headcount.
Galaxy Digital
This firm founded by Michael Novogratz is reportedly exploring eliminating “as much as 20% of its workforce” against the backdrop of the market turmoil. Per Bloomberg,
“The plan under consideration could still be changed and the final number could be in a range of 15% to 20%, according to people familiar with the matter.“
However, it is worth recalling that during the second-quarter earnings call in August, Novogratz said his company had taken some “selective shrinking” of its teams but expected the firm to expand to over 400 people this year from its reported 375.
Commenting on the latest development, Galaxy Digital’s spokesperson Michael Wursthorn said,
“We are always considering optimal team structure and strategy and will share future plans when finalized.”
BitMEX
Crypto exchange and derivative trading platform BitMEX, on the other hand, has also cut down its staff. It was initially reported that the exchange laid off around 30% of its employees. A spokesperson, however, clarified later that the figure was actually lower, without giving an estimate. In an e-mail to Watcher Guru, the spokesperson said,
“We will not share a specific number at this stage.”
The said measure was adopted by the exchange to pivot away from the exchange’s “beyond derivatives” strategy that focussed on spot trading, brokerage, and custody services.
The spokesperson also said that all laid-off employees had been “instrumental” in helping BitMEX branch out from a small startup to one of the top exchanges in the world, and added,
“As an undesirable consequence, we had to make changes to our workforce. Our top priority is to make sure all employees who will be impacted have the support they require.”
Here it is also worth recalling that BitMex Chief Executive Officer Alexander Hoeptner left the firm and joined the list of recent executive departures. Chief Financial Officer Stephan Lutz was appointed as interim CEO.
Also Read: ‘Great Crypto Resignation’ continues as OpenSea CFO resigns
DCG
The Digital Currency Group, on its part, cut 10% of its staff as a part of its restructuring. Per Bloomberg’s unnamed source, notices to those impacted by the reshuffling went out last week. DCG, as such, is run by founder and Chief Executive Barry Silbert and controls Grayscale, Genesis, and a couple of other subsidiaries.
A spokesperson said,
“We recently made a series of internal changes to position DCG for its next phase of growth, including a streamlining of our departments alongside several promotions on our leadership team.”
Notably, the company has promoted Mark Murphy to President from Chief Operating Officer.
The story has been updated at 9:34 AM UTC to incorporate clarifications from a BitMEX spokesperson.