- Workforce Reduction: CoinSwitch trims customer support team by over 30%.
- Market Adaptation: Similar actions seen in response to changing crypto landscape.
- Taxation Impact: Indian exchange faces challenges due to crypto taxation policies.
CoinSwitch, an Indian cryptocurrency exchange, has downsized its customer support team by over 30% due to the subdued state of the market.
Around three weeks ago, the platform let go of 44 employees, which accounts for slightly under 7% of its overall workforce, according to a representative from CoinSwitch who spoke to CoinDesk. Since April, the company has onboarded approximately 60 individuals primarily for positions related to product technology and compliance, resulting in a total staff count of approximately 640 before the recent layoffs. Notably, the customer support division still retains 82 team members.
CoinSwitch’s situation reflects a broader trend of companies having to recalibrate in response to changing circumstances. In a similar vein, competing exchange CoinDCX recently reduced its personnel by approximately 12%, equating to 71 workers, as a result of a bearish cryptocurrency market and the implications of India’s taxation policies, which collectively dampened trading activity and subsequently revenue. India, in particular, has introduced substantial taxes on cryptocurrency, including a 30% levy on crypto profits and a more contentious 1% tax deducted at source (TDS) on all transactions since February 1, 2022.
A spokesperson from CoinSwitch remarked, “As our volumes expand and fresh opportunities emerge, we will be glad to reintegrate those who were affected.”
The local Indian news outlet Moneycontrol reported on these job reductions earlier today.
For the impacted individuals who were laid off, CoinSwitch has provided severance packages and supplementary benefits that extend up to four months, contingent upon their length of service, as per an insider source.