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The cryptocurrency downturn continues to reshape the industry, and Gemini is the latest major exchange to make deep cuts. The company’s decision to reduce staff and exit several international markets highlights the financial pressure facing even well-known crypto firms.

As digital asset trading volumes remain subdued, Gemini’s move signals a broader shift from aggressive expansion to survival-focused consolidation.

A sharp pivot for a high-profile crypto exchange

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, announced plans on Thursday to cut as many as 200 jobs worldwide as part of a sweeping cost-reduction strategy. The layoffs represent roughly 25% of the company’s global workforce.

According to the company, the job cuts will affect employees across Europe, the United States, and Singapore. The restructuring comes as many U.S.-based companies, particularly in technology and finance, have opened the year with significant workforce reductions to manage rising costs and slowing growth.

Retreat from Europe and Australia

Beyond layoffs, Gemini has also approved a plan to wind down operations across multiple international markets. These include the United Kingdom, the European Union, other European jurisdictions, and Australia.

Once the wind-down is complete, Gemini will concentrate its operations primarily in the United States and Singapore. The company described this move as a strategic realignment rather than a temporary pause, signaling a long-term shift in how and where it does business.

The decision reflects the increasingly complex regulatory environment in Europe and other regions, where crypto firms face stricter compliance requirements and higher operating costs.

Profitability takes center stage

In a blog post addressing the restructuring, the Winklevoss twins said the changes are designed to significantly reduce expenses and speed up the company’s path toward profitability. They emphasized that the current crypto market environment demands a leaner and more focused operating model.

Rather than continuing to fund global expansion during a market slowdown, Gemini is choosing to streamline its footprint and preserve capital. The founders framed the move as necessary to ensure the company’s long-term sustainability.

Market reaction underscores investor anxiety

Investors reacted negatively to the announcement. Shares of the New York-based company fell about 7% in afternoon trading following the news.

As of Wednesday’s close, the stock was already down nearly 74% from its $28 offering price at the time of its initial public offering in September. The steep decline reflects broader skepticism toward crypto-related stocks amid prolonged volatility and declining investor appetite for digital assets.

Timeline and financial impact of the restructuring

Gemini expects to largely complete both the layoffs and the international wind-downs by the first half of 2026. The process will depend on local labor laws and consultation requirements in the affected regions.

The company estimates it will record approximately $11 million in pre-tax restructuring and related charges. Most of these costs are expected to be recognized in the first quarter, adding short-term financial pressure even as the company works to lower its long-term expense base.

Analyst view: survival over growth

Industry analysts see Gemini’s move as a pragmatic, if painful, response to market realities.

Matthew Coad, an analyst at Truist, said in a research note that simplifying the business appears to be the right long-term decision. He added that management now faces a strategic shift away from chasing lost market share and toward staying financially viable during a prolonged crypto downturn.

That assessment echoes a growing consensus on Wall Street that the crypto industry is entering a phase where scale and discipline matter more than rapid expansion.

A familiar story in a bruised crypto sector

Gemini’s announcement comes amid a wave of layoffs across the crypto and broader tech sectors. Exchanges, blockchain startups, and fintech firms have all been forced to recalibrate after years of rapid hiring fueled by booming digital asset prices.

As interest rates remain high and speculative investment cools, companies are being pushed to prove they can operate profitably rather than rely on growth narratives alone.

For Gemini, the decision to narrow its geographic focus suggests that regulatory clarity and market depth are now outweighing the benefits of global reach.

The Winklevoss legacy and what comes next

Cameron and Tyler Winklevoss rose to public prominence after a legal battle with Facebook founder Mark Zuckerberg, whom they accused of stealing their idea for what became the social media platform. The dispute was settled in 2008 for a mix of cash and Facebook stock, helping finance their later ventures, including Gemini.

Today, their crypto exchange faces a very different challenge: navigating a maturing industry under tighter financial and regulatory scrutiny. Whether Gemini’s scaled-down strategy will restore investor confidence remains an open question.

What is clear is that the company is betting that focus, cost discipline, and selective markets will offer a more sustainable future than global expansion in uncertain times.

A defining moment for Gemini

Gemini’s layoffs and international pullback mark a defining moment for one of crypto’s most recognizable exchanges. The move underscores how dramatically conditions have changed since the industry’s peak.

As the crypto market searches for stability, Gemini’s retrenchment may prove to be a necessary reset rather than a retreat. The coming year will show whether this leaner model can deliver the profitability and resilience the company is now prioritizing.

(With inputs from Reuters.)

 

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