Gemini Cuts 200 Jobs as Crypto Exchange Navigates Market Pressures

Cryptocurrency exchange Gemini announced on February 5, 2026, that it will eliminate 200 positions across its global workforce as part of a strategic restructuring initiative. The layoffs represent approximately 15% of the company's total employee base and mark the most significant workforce reduction in the exchange's history. The decision comes as the digital asset industry continues to grapple with regulatory uncertainties and shifting market dynamics that have pressured trading volumes and revenue streams across major platforms.

Gemini Layoffs Reflect Broader Industry Challenges

The workforce reduction stems from multiple factors impacting Gemini's operational efficiency. Trading volumes on the platform have declined 35% year-over-year, primarily due to reduced retail investor participation and institutional clients adopting more conservative crypto allocation strategies. Additionally, increased regulatory scrutiny from the Securities and Exchange Commission has forced the company to reallocate resources toward compliance functions while streamlining other operational areas.

Gemini's leadership cited the need to align its workforce with current market realities and position the company for sustainable long-term growth. The restructuring follows a period of aggressive hiring during the 2024-2025 crypto boom when the company expanded its headcount by nearly 60% to capitalize on surging demand for digital asset trading services.

Impact on Operations and Workforce

The layoffs primarily affect Gemini's customer support, marketing, and business development divisions. Approximately 80 positions were eliminated from the company's New York headquarters, while international offices in London and Singapore saw reductions of 70 and 50 employees respectively. The company's core engineering and security teams remain largely intact, reflecting Gemini's commitment to maintaining platform stability and user protection.

Customer-facing operations will be consolidated to focus on high-value institutional clients and active retail traders. The company plans to leverage automation and artificial intelligence tools to maintain service quality while operating with a leaner workforce. Gemini's institutional custody services, which generate higher profit margins than retail trading, will continue operating at full capacity.

Company Financial Background

Founded by Cameron and Tyler Winklevoss in 2014, Gemini achieved a peak valuation of $7.1 billion during the crypto market surge in late 2024. However, the exchange has faced mounting financial pressure as trading revenues declined alongside broader market volatility. The company's revenue dropped 28% in 2025 compared to the previous year, forcing management to reassess operational expenses.

Unlike publicly traded competitors, Gemini's private status has provided some insulation from immediate shareholder pressure. However, the company reportedly burned through $150 million in cash reserves during 2025 while maintaining elevated operational costs. The workforce reduction is expected to save approximately $40 million annually in compensation and benefits expenses.

Industry Outlook and Market Trends

Gemini's restructuring reflects broader challenges facing the cryptocurrency exchange sector. Major competitors including Kraken, Bittrex, and FTX US have implemented similar workforce reductions over the past 18 months. The industry has shed an estimated 15,000 jobs since peak employment levels in early 2024.

Regulatory developments continue to shape the competitive landscape. The pending approval of additional Bitcoin and Ethereum exchange-traded funds has shifted some trading activity away from traditional crypto exchanges toward traditional financial institutions. This trend has particularly impacted mid-tier exchanges like Gemini that compete primarily on user experience rather than the lowest fees.

Market analysts expect continued consolidation within the crypto exchange space as smaller platforms struggle to maintain profitability amid reduced trading volumes. The most successful exchanges are those adapting quickly to regulatory requirements while diversifying revenue streams beyond spot trading.

Strategic Direction Moving Forward

The workforce reduction positions Gemini to weather extended market volatility while maintaining its core competitive advantages in security and regulatory compliance. The company plans to focus resources on expanding its institutional services division and developing new products for qualified investors.

Management indicated that additional cost-cutting measures may be necessary if market conditions continue deteriorating. However, Gemini's strong regulatory standing and established institutional relationships provide a foundation for recovery when crypto markets eventually stabilize. The exchange remains committed to its long-term vision of building trusted infrastructure for the digital economy.