Gemini, the crypto exchange led by billionaire twins Cameron and Tyler Winklevoss, will be laying off a considerable chunk of its staff, owing to the extended downturn of the crypto market.
“Turbulent Conditions” Force Gemini To Lay Off 10% Of Staff
In a June 2 blog post, Gemini announced that it would pink-slip 10% of its staff to slash costs as “turbulent market conditions” are “likely to persist for some time”. The twins reiterated that they think the crypto revolution is underway, but they posited that the current crypto market rout coupled with unfavorable macroeconomic conditions has forced them to review their workforce.
“This is where we are now, in the contraction phase that is settling into a period of stasis — what our industry refers to as ‘crypto winter’. […] After much thought and consideration, we have made the difficult but necessary decision to part ways with approximately 10% of our workforce,” the Winklevosses wrote in the notice to their employees.
They indicated that Gemini would redirect its focus to products that are paramount to the company’s mission.
Gemini is notably the only high-profile crypto exchange to reduce its headcount so far. The firm has shut down all its physical offices and all the employees that got the axe are expected to discuss severance packages with their managers.
Layoffs And Crypto Winter
Crypto prices have been on a generally downward trend ever since the broad market cap hit $3 billion record highs in November. This has been made worse by inflation skyrocketing to levels not seen since the 1980s and the Russia-Ukraine war.
Normally, nosediving prices translate to lower interest for day traders, leading to muted trading volumes and thus low revenues for crypto trading platforms like Gemini.
The announcement today comes as major industry players restructure their businesses to weather straitened times. For instance, Coinbase announced in May that it will hold off on hiring and reevaluate its headcount needs.
Coinbase-backed Rain Financial, a leading exchange in Bahrain, has also parted ways with dozens of its staff, according to a Bloomberg report today.
Moving forward, Gemini believes the present contraction phase is a chance to “double down” on its strengths so that it may emerge as a catalyst for innovation in the crypto sector’s next parabolic cycle.