Crypto exchange Gemini to lay off 10% of its workforce

Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, is laying off about 10% of its workforce Thursday, citing the “crypto winter.”

Why it matters: The news is a sign that even the enormous amount of dry powder in crypto won’t be enough to fully protect the industry from the market’s downturn.

• Gemini in particular just raised in November, gathering $400 million at a $7.1 billion valuation.

“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,’” the brothers wrote. “This has all been further compounded by the current macroeconomic and geopolitical turmoil. We are not alone.”

Context: That ominous statement, “we are not alone,” is true. Crypto exchanges have been among the most visibly hit by the combination of interest rate hikes, a return back to semi-normal, and geopolitical shocks.

• Latin America-focused Bitso laid off 80 employees earlier this month.
• Coinbase, after emphasizing plans to grow this year, later said it would slow its hiring plans two weeks ago.

Details: In a blog post on Gemini’s website, the Winklevoss brothers said that affected employees will today receive a calendar inviting them to one-on-one conversations about their separation and healthcare benefits.

• Gemini did not disclose its employee count, though over 1,000 on LinkedIn claim to work there.
• On an odd note, the company has also shut its physical offices today, so that the talks will be held remotely and “protect the privacy” of employees.