Gemini Layoffs: Crypto Exchange Cuts 30% After $582M Loss

Gemini said on February 5, 2026 that it would cut about 25% of its workforce, affecting roughly 200 employees, while retreating from the U.K., European Union and Australia. The move followed a year in which the exchange projected 2025 net revenue of $165 million to $175 million against operating expenses of $520 million to $530 million, according to its February 17, 2026 SEC filing and company statements.

Gemini’s restructuring is a cost-cutting response to a business that expanded faster than its revenue base. The company’s own preliminary figures show a wide gap between sales and spending in 2025, even as monthly transacting users rose and the firm remained active in U.S. crypto trading, custody, credit cards and prediction markets. For readers tracking the exchange, the key questions are straightforward: how large the cuts are, what the financial backdrop looks like, which markets Gemini is leaving, and what this means for customers and the company’s path to profitability. Those answers are now clearer from public filings and contemporaneous reporting.

25% workforce cut followed February 5 restructuring plan

Gemini’s announced reduction is 25%, not 30%, based on the public reporting available. Reporting published on February 5, 2026 said the layoffs would affect about 200 employees across Europe, the United States and Singapore, while Gemini also moved to wind down operations in the U.K., EU and Australia. A separate report the same day said customer accounts in those regions would shift to withdrawal-only mode from March 5, 2026, with fuller closures to follow about a month later.

That distinction matters because the headline claim of a 30% cut after a $582 million loss is not supported by the sources reviewed. Gemini’s own February 2026 SEC filing did not disclose a $582 million net loss for 2025. Instead, it gave preliminary ranges for revenue, expenses and adjusted EBITDA, while earlier shareholder materials showed a net loss of $441.99 million for the first nine months of 2025.

Why $520M to $530M in 2025 expenses forced a reset

The clearest financial pressure point is operating expense. Gemini told the SEC on February 17, 2026 that it expected total operating expenses of $520 million to $530 million for the year ended December 31, 2025, up from $308 million in 2024. The company attributed the increase to personnel-related costs, including stock-based compensation, plus technology, general and administrative spending, and marketing tied to strategic initiatives.

Revenue did not keep pace. Gemini estimated 2025 net revenue at $165 million to $175 million, versus $141 million in 2024. Even at the top end of that range, the company’s operating cost base was roughly three times annual net revenue. That imbalance helps explain why management chose layoffs and geographic retrenchment rather than incremental cuts.

Historical context reinforces the point. For the first nine months of 2025, Gemini reported net revenue of $117.689 million, total operating expenses of $353.484 million and a net loss of $441.99 million. In the third quarter alone, net loss was $159.514 million. Those figures show that the pressure was not confined to a single weak quarter; it persisted through most of 2025.

How the U.S.-first strategy replaced Gemini’s overseas push

Gemini’s restructuring is not only about payroll. It also marks a strategic retreat from several international markets. Reporting on February 5 said the company would stop pursuing the U.K., EU and Australian businesses and refocus on the United States, which the Winklevoss founders described as Gemini’s core market and the place where they want to restore profitability.

That reversal is notable because Gemini had spent years building regulatory permissions abroad. The same February 5 reporting noted that the company had obtained a MiCA license in Malta and authorization to offer derivatives under MiFID II, only to step back from those markets months later. In practical terms, Gemini chose lower geographic reach in exchange for lower complexity and a narrower cost structure.

By comparison, larger listed rival Coinbase was reported to be handling about 25 times Gemini’s trading volume, according to CoinGecko data cited in contemporaneous coverage. That peer gap helps explain why Gemini’s overseas expansion became harder to justify: scale advantages in exchange liquidity and customer acquisition tend to compound, and smaller venues face higher relative compliance and operating costs.

600,000 MTUs show activity growth, but not enough to offset losses

One counterpoint in Gemini’s filing is user activity. The company said it served about 600,000 monthly transacting users as of December 31, 2025, up 17% from December 31, 2024. That suggests customer engagement did grow. Yet the increase did not translate into a sustainable income statement because costs rose much faster than revenue.

Gemini also pointed to growth in services revenue, especially from its credit card business. But even with that diversification, the company still projected adjusted EBITDA between negative $267 million and negative $257 million for full-year 2025. In other words, new revenue lines improved the top line without closing the profitability gap.

For customers, the immediate operational issue is regional access rather than solvency. The sources reviewed show service wind-downs in selected overseas markets and a strategic concentration on the U.S., not a bankruptcy filing. Users in affected jurisdictions would need to follow Gemini’s withdrawal deadlines and account notices tied to the February 5 restructuring.