US-based crypto exchange operator Gemini slashed about 10% of its work force, founders Cameron and Tyler Winklevoss wrote in a blog post published today.
Gemini did not disclose the number of employees cut, but according to its LinkedIn page more than 1,000 people work at the company, which may translate to about 100 jobs. Gemini did not immediately respond to a request seeking comment on the number.
This is reportedly the first time Gemini has announced layoffs since its inception in 2014. The cuts come amid a currently bearish crypto market and macroeconomic conditions when job reductions are increasing. According to Layoffs.fyi, almost 15,000 people lost their jobs last month globally at start-up companies.
"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.' This has all been further compounded by the current macroeconomic and geopolitical turmoil. We are not alone," the billionaire Winklevoss brothers wrote in the blog post.
Sagging crypto prices
Crypto prices have declined this year from the highs reached last November. As a result, trading volumes at crypto exchanges have dropped, including that of Gemini.
Gemini had less than 2% market share in last month's crypto trading volume, as opposed to market leader Binance's 64%, according to The Block Research.
Gemini now wants to focus on only those products that are critical to its mission, because the current turbulent market conditions "are likely to persist for some time," according to the Winklevoss twins.
Gemini's physical offices will remain closed today. The firm will hold remote conversations with impacted employees on their separation packages and health-care benefits. On Friday, Gemini plans to hold a company-wide "standup" to discuss its future.
"Today is a tough day, but one that will make Gemini better over the long run," the Winklevoss brothers said.
Gemini's staff cuts come seven months after the company raised $400 million at a valuation of $7.1 billion in its first funding round.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.