Media reports mass layoffs at NYDIG

The New York Digital Investment Group (NYDIG), a platform focused on institutional players, laid off about 100 people, or roughly 30% of its staff. CoinDesk reports, citing sources.

According to one of them, the layoffs continued for a few weeks. Wall Street Journal reports that 110 employees were left without work.

“This sounds like a desk mentality, where no one talks to anyone. You could disappear, and no one would know about it for months,” said a former NYDIG employee to CoinDesk.

The company spokesperson declined to comment.

In December 2021, the platform raised a record $1 billion for the industry, valued at $7 billion. In March it closed a financing round worth $200 million, and a month later raised another $100 million from insurance companies.

“NYDIG put all its efforts into this strategy […]. They spent the money, telling the story that they would bring Bitcoin to the masses,” added a source for the publication.

In October 2022, the company raised $720 million for its Institutional Bitcoin Fund and announced leadership changes. The presidency of NYDIG, replacing Yan Zhao, was taken by Nate Conrad, and Tejas Shah succeeded Robert Gutmann as CEO.

As the bear market persisted, headcount reductions were announced at BitMEX, Robinhood, Gemini, Bitso and the parent company of Brazil’s exchange Mercado Bitcoin.

Coinbase will cut about 18% of staff, the crypto-lending platform BlockFi — 20%. According to the press, Huobi will lay off 30% of workers, the gaming NFT studio Immutable — more than 20%.

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