7 Impacts of Big Layoffs at Gemini: Crypto Exchange lays off 200 workers amid sluggish market

Jakarta, Pintu News – As early as 2026, major cryptocurrency exchanges are facing strong economic and operational pressures, signaled by Gemini Space Station Inc.’s decision to cut around 200 employees globally. The move is indicative of structural challenges in the crypto industry, where companies must adjust their operations and strategies to stay afloat in volatile and declining market conditions.

1. Gemini lays off 200 workers amid crypto crisis

Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, announced plans to lay off up to 200 employee positions, which equates to about 25 percent of its total global workforce. The move is part of a larger effort to reduce costs and accelerate profitability in a sluggish crypto market. The restructuring includes the closure of operations in several regions including the United Kingdom, the European Union, and Australia, with services focused solely on the United States and Singapore.

These labor cuts come at a time when many tech companies and crypto exchanges are slashing staff in response to depressing global economic conditions. The decline in the price of digital assets, including Bitcoin and other altcoins, has reduced operating income and increased the need for efficiency. Investors and workers in the industry are now paying attention to how companies focus more on long-term strategies.

Also Read: 5 Crypto that Whale is Eyeing in February 2026, Quietly Accumulating Amid Volatility

2. Gemini Business Focuses Only on the US and Singapore

As part of the restructuring, Gemini decided to cease operations in a number of international markets such as the European Association and Australia, and shut down new service functions in those regions. The exchange chose to focus its efforts on markets that are seen as more stable and strategic, namely the United States and Singapore. These operational cuts were deemed necessary to deal with broader market pressures as well as intensifying competition in the crypto industry.

Some analysts claim that this decision will help Gemini reduce its total operating costs, but it also reflects challenges to the exchange’s ability to maintain a competitive global market share. This sharper focus is seen as a response to the volatile market environment and regulatory uncertainty in many countries.

3. Impact of Layoffs to Crypto Industry Sentiment

Staff layoffs involving around a quarter of the workforce are a strong signal that the crypto industry is facing a period of major structural adjustment. Investors view this move as a reflection of a more cautious market environment, especially when crypto asset prices are under pressure and volatility is high. This drop in sentiment could slow growth and new investment in the sector.

The negative sentiment was also fueled by falling prices of major cryptocurrencies and thinning liquidity on exchanges, so exchanges like Gemini had to respond with drastic fee reductions. Industry players see this as a period of consolidation that may lead to further restructuring in the crypto sector globally.

4. Territory Closure Reduces Market Access

The suspension of operations in the European and Australian markets means that users in those regions will no longer be able to open new accounts and will go into withdrawal-only mode. This has a direct impact on crypto users in those regions as they will have to move their assets off the Gemini platform before the full shutdown of the service takes place.

The decision may also affect consumer confidence in crypto exchanges that need to consider the stability of their global services. Some international investors may view this move as a decrease in service exposure outside of the US and Singapore, creating challenges for future market expansion.

5. Significant Restructuring Costs

Gemini estimates that this restructuring will incur pre-tax costs of approximately US$11 million (approximately Rp186 billion), most of which will be recorded in the first quarter of 2026. These costs include severance payments, facility fees, contract termination and other professional fees.

Although these costs have an impact on the short-term financial statements, management views them as strategic investments to pursue profitability in the long run. The move also shows that the company is focusing more on cost efficiency rather than expansive growth amid market pressures.

6. Gemini Share Price Drops After Announcement

Following the announcement of staff layoffs and operational changes, Gemini’s shares fell about 7 percent in afternoon trading. This added pressure to the already weak share price since the company’s IPO.

The stock’s decline reflects market concerns over the company’s long-term growth prospects amid fierce competition and heavy market pressure. Global investors now tend to be more cautious in assessing potential returns in the crypto exchange sector which is going through a phase of great challenges.

7. Implications for Crypto Investors

For crypto investors, Gemini’s decision to cut staff and centralize operations provides a lesson on business risk in a volatile industry. The cryptocurrency market could experience a maturing period where only players capable of managing costs and risks can survive.

Investors are advised to pay attention to the exchange’s fee structure and strategy before deciding where and how they place their crypto assets. Readiness for operational changes and market dynamics is an important factor to maintain exposure in the evolving cryptocurrency ecosystem.

Also Read: 3 Crypto Underrated in February 2026 that Investors are Starting to Look at, Not Just Hype!

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Reference

• Channel News Asia/Reuters. Crypto exchange Gemini plans to lay off up to 200 staff, exit Europe and Australia. Accessed February 6, 2026.