CoinSwitch, an Indian Crypto Exchange, Reduces Support Team Amidst Market Stagnation
Indian cryptocurrency investment platform, CoinSwitch, has reduced its customer support team by more than a third, citing the sluggish market activity. The company recently laid off 44 employees from the team, constituting nearly 7% of the total workforce. According to a spokesperson, the company has been adjusting to the evolving landscape and has hired about 60 individuals since April, primarily in product technology and compliance roles. This brings the total employee count to around 640 prior to the layoffs, with the customer support team now consisting of 82 members.
CoinSwitch's decision is not an isolated case, as the challenging environment has prompted other companies to make similar adjustments. In a comparable move earlier this month, CoinDCX, a rival platform, cut approximately 12% of its staff, resulting in the termination of 71 employees. The crypto market downturn and India's tax regulations have combined to decrease trading volumes and subsequently impact revenue. The Indian government has imposed significant taxes on cryptocurrencies, including a 30% tax on crypto profits and a more contentious 1% tax deducted at source (TDS) on all transactions since February 1, 2022.
A company spokesperson emphasized that the company is open to rehiring impacted employees when circumstances change and new roles become available. CoinSwitch has also reportedly provided severance packages and extended benefits for up to four months, depending on the duration of service for the affected employees. The job cuts were reported by local Indian news outlet Moneycontrol earlier today.