Gemini expands restructuring…cutting workforce by 30% this year

Doohyun Hwang

Summary

Gemini said it carried out restructuring, including cutting its total workforce by about 30% this year and exiting the U.K., EU and Australian markets.
Gemini reported an annual loss of about $585 million, with fourth-quarter revenue of about $60 million and a net loss of $140.80 million.
Gemini is shifting its focus to new businesses such as prediction-market platforms, and lawsuits from investors are under way as a result.

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Crypto exchange Gemini, led by the Winklevoss twins, has cut roughly 30% of its total workforce so far this year, according to reports. The company aims to improve productivity by reducing costs and adopting artificial intelligence (AI).

According to Bloomberg on the 19th (local time), Gemini said in a shareholder letter that restructuring carried out since the beginning of the year has reduced its workforce by about 30%. As of March 1, it had around 445 employees.

Gemini is also said to have made additional cuts to its U.S. headcount after announcing plans to reduce staff by up to 25%. In the process, key executives—including the chief operating officer (COO), chief financial officer (CFO) and chief legal officer (CLO)—have left the company. It also exited the U.K., European Union (EU) and Australian markets.

The company said it plans to raise operating efficiency by introducing AI technology alongside the restructuring.

Weak performance has also persisted. Gemini’s annual loss last year totaled about $585 million. Fourth-quarter revenue rose about 40% year on year to roughly $60 million, but net loss widened to $140.80 million.

Gemini is a small-to-midsize exchange with a global market share of less than 1%, and it has struggled in an industry where scale is critical. Its largest rival, Coinbase, has about 4,951 employees, and its trading volume is estimated to be more than 40 times that of Gemini.

Rising volatility in the crypto market and declining trading volumes have also added to the burden. Against this backdrop, Gemini is reported to be shifting its focus to new businesses such as prediction-market platforms.

However, the strategic shift has also sparked investor backlash. Some investors have filed lawsuits, claiming Gemini did not adequately disclose its plan to pivot to the prediction-market business.

Industry watchers say restructuring and business overhauls among small and midsize exchanges are likely to continue as falling volumes collide with cost pressures.