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Indian cryptocurrency platforms CoinSwitch and CoinDCX reduce workforce in response to market downturn.
The CoinSwitch cryptocurrency exchange is the most recent trading platform in India to reduce its workforce amid the ongoing cryptocurrency downturn, as reported by the local news outlet Moneycontrol on Aug. 28.
The exchange is said to have laid off 44 individuals from its customer support team in August, attributing the decision to redundancy in positions due to a decline in customer inquiries prompted by the bear market.
“We consistently assess our operations to remain competitive, focusing on innovation, value, and service for our clients. Consequently, we adjusted the size of our customer support team to correspond with the current volume of customer inquiries on our platform,” CoinSwitch stated. The company noted that this affected the positions of 44 members of its support staff, who “voluntarily resigned from their positions following thorough discussions with their managers.”
The 44 employees represent a notable portion — approximately 8% — of CoinSwitch’s overall workforce. As per CoinSwitch’s LinkedIn profile, the company has 519 employees at the time of this report. The firm did not immediately reply to Cointelegraph’s request for comment.
The announcement regarding CoinSwitch’s layoffs emerged just a week after another prominent local exchange, CoinDCX, also reduced its workforce by 12%. According to LinkedIn, the firm has 730 employees at the time of this report.
“We are making the challenging decision to decrease the size of our team by about 12%, and some of our exceptionally skilled team members will be leaving the organization,” CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal declared on Aug. 22.
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The CoinDCX founders also mentioned market difficulties, noting that domestic exchanges have faced the repercussions of the 1% tax deducted at source (TDS), which affects local crypto exchanges. They stated:
“These factors had a significant impact on our volumes and thus revenues. To adapt, we undertook several proactive measures, including direct cost optimization and investment in automation to drive efficiency and productivity.”
According to the announcement, the affected CoinDCX employees were assured of receiving a support package that includes severance pay equivalent to the full notice period, an additional month of salary, extended health insurance, and other assistance.
As previously reported, India implemented a 30% tax on crypto profits in 2022, leading to a substantial departure of cryptocurrency service providers and a significant drop in crypto trading activity. The country has also introduced a 1% TDS on crypto exchanges, meaning that exchanges are required to pay 1% on all transfers of crypto assets.
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