Cryptocurrency exchange Gemini is slashing its workforce by approximately 10% amid "turbulent market conditions that are likely to persist for some time."
"The crypto revolution is well underway and its impact will continue to be profound. But its trajectory has been anything but gradual or predictable," Gemini's billionaire founders Cameron and Tyler Winklevoss wrote in a blog post Thursday.
"Its path can best be described as punctuated equilibrium — periods of equilibrium or stasis that are punctuated by dramatic moments of hypergrowth, followed by sharp contractions that settle down to a new equilibrium that is higher than the one before."
The twins warned that the industry is entering a "crypto winter," described as a "contraction phase settling into a period of stasis."
"This has all been further compounded by the current macroeconomic and geopolitical turmoil," they noted. "We are not alone."
Competitor Coinbase recently said it would slow down its hiring and reassess its headcount against its "highest-priority business goals."
In addition, Robinhood Markets Inc. announced plans in April to lay off 9% of its workforce to "improve efficiency, increase our velocity and ensure that we are responsive to the changing needs of our customers."
|COIN||COINBASE GLOBAL INC.||133.76||+9.04||+7.25%|
|HOOD||ROBINHOOD MARKETS INC.||9.32||+0.52||+5.91%|
Bitcoin, the world's largest cryptocurrency, is currently trading above $30,000 per coin, well off its high of $68,990.90 per coin hit in November 2021.
According to LinkedIn, Gemini currently employs about 1,000.
Impacted Gemini employees will receive a calendar invite on Thursday for an individual conversation that will provide information on separation packages and health care benefits. The company's offices have been closed Thursday for remote meetings and to protect impacted employees' privacy.
On Wednesday, Gemini will hold a companywide meeting with all remaining employees to talk about the company's future.
"Today is a tough day, but one that will make Gemini better over the long run. Constraint is the mother of innovation and difficult times are a forcing function for focus, which is critical to the success of any startup," the Winklevoss brothers added. "Every great company throughout history has faced similar challenges along the way and Gemini is no different."
"As painful as this moment is, we ultimately see it as an opportunity to double down on our strongest ideas and customer-centric products so that we may be the catalyst of innovation coming out of these leaner times that will help fuel the next cycle of crypto growth and adoption," the blog post concluded.
"We have never had more conviction in our people, our products and our mission — to unlock the next era of financial, creative and personal freedom for our customers. Amazing awaits."