Crypto And Tech Winter Sees 10% Layoffs At Gemini And Tesla

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Last Updated on 8 June 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Tech and crypto become more and more correlated apparently. Both now speak of ‘winter’ conditions, aka a tough time that they’re going through.

The latest sign of this correlation is that both Tesla and crypto trading platform Gemini announced 10% layoffs in the past few days.

Just last week, an email from CEO Elon Musk informed management that:

Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas.

As Musk is mostly seen as a visionary, US media has raised the alarm and forecasts other companies will be forced to do the same. Tesla’s announcement comes only days after Elon had ordered everyone back in office five days per week.

Already in the month of May, Netflix announced its second round of layoffs, after the company had an abysmal stock market run in 2022.

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Divest 10%

A similar situation seems to be taking place in the world of crypto, which has seen many platforms announce layoffs (Coinbase announced a hiring freeze, which was extended last week). Latest example was Gemini.

The Winklevoss brothers, who became world famous because of their portrayals in the 2010 movie The Social Network about the origins of Facebook, announced in a statement last week that their trading company, Gemini Trust had decided to “divest about 10%” of its staff.

They cite the “strong contractions” of the crypto markets that follow the “dramatic moments of hypergrowth” to justify this decision. The Winklevoss brothers believe that this situation is aggravated “by the current macroeconomic and geopolitical turbulence”.

The founders of Gemini asked their team leaders “to focus only on mission-critical products” and “if their teams are the right size for current market conditions”. These would be “likely to persist for some time”.