It is that time of year when many companies have to go through a restructuring of sorts. That applies to crypto companies like Gemini as well. The firm will lay off 10% of its employees amid ongoing market turmoil.
Gemini Is Crumbling Slightly
When companies grow too quickly for their own good, there will be a blowback of sorts. For Gemini, often considered the “crypto unicorn,” laying off part of its workforce is necessary. Although the company is still doing well catering to institutional traders, the ongoing market conditions make it more difficult to turn a profit. As markets remain relatively bearish, there are consequences the company cannot escape.
Reducing the workforce by up to 10% is a very steep decision but one that is understandable. Turbulent market conditions will often force a priority shift, for better or worse. The easiest solution is to get rid of some employees and cut overhead costs. Cameron and Tyler Winklevoss have confirmed the industry is still in a “crypto winter” and things may not improve overnight.
Gemini has an estimated 1000 employees, which means roughly 100 staff members will lose their jobs. Additionally, the company will slash some products that it has provided, shifting to “products critical to the Gemini mission” only. It is unclear what that means exactly, although more information will be made accessible in the coming weeks and months.
Gemini raised $400 million at a 47.1 billion valuation in late 2021. Similar to Klarna, which saw a steep valuation and is now forced to raise more money at a lower price point, Gemini has become a victim of its own success.