NYDIG Fired One-Third Staff Last Month: Report
- NYDIG, laid off close to one-third of its staff in Sept., according to a report from the WSJ which cited people with the knowledge of the matter.
- The number of employees that were laid off amounted to around 110 on Sept. 2022 and executives said that the firm is looking to cut its expenditure and focus on promising businesses.
- On Oct. 3, NYDIG confirmed that the top two executives Chief Executive Robert Gutmann and President Yan Zhao were leaving the crypto services platform.
One of the most prominent Bitcoin trading and banking firms, NYDIG, laid off close to one-third of its staff in Sept., according to a report from the WSJ, which cited people familiar with the matter as its source. It seems that the bearish market and decline in prices of the world’s biggest cryptocurrency has affected almost every firm focused on crypto, and there has been a steady decline in the demand for crypto services.
The report added that it was the executives of the firm that informed the employees of their jobs being cut and the number of employees that were laid off amounted to around 110 on Sept. 2022. These employees were told that NYDIG is looking to cut its expenses and narrow its focus to more-promising businesses. It seems that the financial situation is not promising at the firm and that the expanding into other products might not be feasible.
Additionally, this cutback came just before two weeks the firm announced that it was replacing its top two executives. On Oct. 3, NYDIG confirmed that the top two executives Chief Executive Robert Gutmann and President Yan Zhao were leaving the crypto services platform and that they would be replaced by Tejas Shah, formerly head of institutional finance, and Nate Conrad, global head of payments, respectively.
Interestingly, Gutmann and Zhao will remain with the parent firm of NYDIG, i.e., Stone Ridge Holdings Group. In its statement, the firm failed to acknowlege the fact that it had fired one-third of its employees and it also did not specify why the top two executives left the firm but retained their positions in the parent firm. The firm also said that its sales were up 130% during the first half of 2022.
“The firm’s balance sheet is the strongest it’s ever been, and now we’re investing aggressively into a capital-starved market,”
said NYDIG.
NYDIG was founded in 2017 to provide crypto banking services and the firm seems to have profited from the boom in the crypto adoption of 2020-21. However, it aligns itself with other crypto firms that laid off employees this year including Coinbase, Gemini and more.
As reported earlier, the firm also struck a deal with the New York Yankees to become the payroll platform of choice for the famous US baseball team.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
