Weeks Before Replacing its Top Executives, NYDIG Dismissed 30% of its Workforce (Report)

New York Digital Investment Group (NYDIG), an investment management company that offers a variety of bitcoin services, reportedly laid off about one-third its staff in September.

It announced the resignation of Robert Gutmann, CEO, and Yan Zhao, President. The former leaders of NYDIG’s parent company Stone Ridge Holdings Group, despite the redundancies, remained key members.

Join the Dismissal Spree

The Wall Street Journal reported that NYDIG had fired 110 employees last month, which is 30% of its total workforce. This was in response to the continuing bear market. The firm informed the employees affected that it was “seeking to reduce expenses and narrow its focus on more-promising business.”

NYDIG announced earlier this month that President Yan Zhao and CEO Robert Gutmann had resigned. The firm did not give any specific reasons for their departures and announced that Tejas Shah (and Nate Conrad) would assume their respective roles.

The aforementioned amendments came as a surprise since the cryptocurrency-focused entity disclosed its bitcoin balances hit an all-time high during Q3, up almost 100% YOY. Its revenue increased by 130% during the second quarter 2022, and then another 13% in Q3.

The company raised $720million for its institutional Bitcoin fund a few weeks back. The US SEC is currently reviewing the initiative and will not approve it.

Ross Stevens, Founder and Executive Chair of NYDIG, claimed that the firm’s balance sheets are “the strongest they’ve ever been”. He also stated that changes to its structure would be necessary if “markets collapse.”

Who else has laid off staff?

Many companies in the sector increased their operations and employed more people to meet the increasing demand for digital assets. This was prompted by the crypto bull market. But, the negative trends of this year changed everything.

These include some of the most popular exchanges such as CryptoCom, Gemini and Coinbase.

OpenSea, the largest NFT marketplace, had to make this decision due to declining interest in its niche. It laid off 20% of its employees in July.

Binance is one of those companies that believes the plunge in the crypto market shouldn’t be a reason for employees to be fired. Changpeng Zhao, the CEO, stated that it was a good time to hire people.

He stated that “We have a very strong war chest and we are actually expanding hiring right now.”

The post NYDIG Dismissed 30% Of Its Workforce Weeks Before Replacing Their Top Executives (Report) originally appeared on CryptoPotato.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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