Anchorage Digital Cuts 17% of Workforce Amid Sector-Wide Cost Pressures

Anchorage Digital, a digital asset platform, has laid off approximately 17% of its workforce, citing sector-wide cost pressures. This move comes as the company continues to navigate the challenges facing the crypto industry. The layoffs affect roughly one in six employees, with no exact headcount disclosed.

The decision to cut staff is part of a broader restructuring effort at the company. While the exact teams affected and business units impacted have not been outlined, the move is seen as a response to the difficult macroeconomic backdrop and volatility in crypto markets.

This is not the first time Anchorage has undergone significant restructuring. In March 2023, the company let go of around 75 employees, or about 20% of its staff at the time, as part of a strategic review that led to a sharper focus on institutional custody and regulated services.

The 2023 cuts were attributed to regulatory uncertainty in the US, a difficult macroeconomic backdrop, and volatility in crypto markets. However, officials at Anchorage stated that the latest layoffs were not caused by any single event or business line, but rather by the broader challenges facing crypto firms.