Galaxy Digital Holdings Ltd., the crypto financial services firm founded by billionaire Michael Novogratz, is exploring eliminating as much as 20% of its workforce against the backdrop of a digital-assets market downturn. 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. New York-based Galaxy reported 375 employees globally as of the end of the second quarter, which would mean as many as 75 positions could be eliminated. “We are always considering optimal team structure and strategy and will share future plans when finalized,” said Galaxy’s spokesperson Michael Wursthorn. “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.” Galaxy’s shares have tumbled 70% this year, inline with many of the most popular cryptocurrencies. Its second-quarter loss more than doubled from a year ago, primarily due to unrealized losses on digital assets and on investments in its trading and principal investments businesses. Novogratz was a backer of Do Kwon’s Terraform Labs, the company behind the failed Terra and Luna tokens. In July, Novogratz acknowledged that he was “darn wrong” about the magnitude of the leverage in the system. The crypto industry has seen widespread layoffs this year following the collapse of coin prices and the bankruptcy of hedge fund Three Arrows Capital. Crypto exchange Coinbase Global Inc., brokerage Genesis, and lender BlockFi have all announced job reductions. During the second-quarter earnings call in August, Novogratz said Galaxy has taken some “selective shrinking” of its teams but expects the firm to expand to over 400 people this year. In a October interview with Bloomberg TV, Novogratz said he expects “a rough few months of markets that are pricing in tremendous amount of bearishness” due to inflation and geopolitical risks. Galaxy is due to report third-quarter earnings result on Nov. 9.