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Gemini Layoffs Alert: Crypto Company Makes Second Round of Job Cuts

  • Gemini laid off about 10% of its staff just two months ago.
  • Now, a report suggests that the company has laid off another 7% of its workers.
  • This is happening even as the prices of cryptocurrencies and crypto company stocks are experiencing a brief rally.
Gemini layoffs - Gemini Layoffs Alert: Crypto Company Makes Second Round of Job Cuts

Source: Grey82 / Shutterstock.com

Cameron and Tyler Winklevoss’ cryptocurrency exchange, Gemini, reportedly laid off part of its staff recently. It’s not the first round of Gemini layoffs. Moreover, critics might suggest that this is indicative of broader problems for crypto-related businesses generally.

As InvestorPlace Financial News Writer Brenden Rearick previously indicated, the summer of 2022 hasn’t been ideal for Gemini. In June, Rearick reported that a crypto IRA company was suing Gemini. This took place after a hack cost the IRA company $36 million in assets.

Also in the month of June, the Winklevoss twins released a controversial blog posting. In it, they announced the cutting of “approximately 10%” of Gemini’s workforce.

Now, there’s a second round of job cuts as TechCrunch cites a “source close to the company” and suggests that Gemini is reducing its workforce by an additional 7%. More specifically, the source apparently stated that Gemini is laying off 68 of its workers in this round.

Why Are the Gemini Layoffs Important?

This report could provide fodder for critics of Gemini, and possibly of crypto-related businesses in general. At the very least, it’s evidence that these businesses aren’t immune to recent widespread tech-market layoffs.

In the blog posting announcing the 10% workforce reduction, the Winklevoss twins cited “turbulent market conditions.” They may have been referring to what some folks have called this year’s “crypto winter.” Notably, Bitcoin (BTC-USD) and other cryptocurrencies have lost much of their value in 2022 so far.

Granted, the BTC price has recovered somewhat, and even reclaimed the $22,000 level. A great deal of damage has already been done, though, as Bitcoin has fallen from a peak of around $69,000.

TechCrunch’s source reportedly stated that the second round of Gemini layoffs was due to what the company described as “extreme cost cutting.” If the report is accurate, it certainly doesn’t bode well for Gemini.

This leads to a broader question: Will other cryptocurrency and blockchain-related businesses also implement job cuts? And, is the recent bounce in Bitcoin and other cryptos too little, too late for these businesses? Stand by for further developments as Gemini and other crypto companies are forced to deal with an exciting but volatile cryptocurrency market.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/gemini-layoffs-alert-crypto-company-makes-second-round-of-job-cuts/.

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