Indian crypto exchange CoinDCX announced a reduction in its workforce by approximately 12%. The decision, described as difficult by the company’s founders, Sumit Gupta & Neeraj Khandelwal, comes in response to the prolonged bear market and the impact of India’s TDS (Tax Deducted at Source) on domestic exchanges.
The crypto market’s tough macro conditions have significantly affected CoinDCX’s volumes and revenues, leading to the need for resizing certain teams to steer the business toward profitable and sustainable growth. According to the announcement, the company is laying off about 71 employees. The Mumbai-based company has about 590 employees.
The company undertook several proactive measures, including direct cost optimization and investment in automation, to drive efficiency and productivity.
CoinDCX has expressed deep regret over the decision and has put together a support package for the impacted employees. This includes severance pay equivalent to the full notice period, an additional one month of salary, variable pay & incentives dues, encashment of unutilized leaves, extension of health insurance & wellness benefits, and access to counseling support.
A path forward: CoinDCX’s commitment to building a stronger business
Despite the workforce reduction, CoinDCX remains bullish on the Indian opportunity and is committed to driving crypto and web3 adoption to 50 million people by 2025. The company has reassured its customers and partners that its dedication to delivering outstanding service has not and will not waver and that ensuring customer satisfaction remains its topmost goal.
CoinDCX’s founders have also emphasized that no further team reduction is planned and that they have had multiple thorough and deliberate discussions with senior leaders in the company to ensure this. They remain committed to weathering challenges and building a stronger and healthier business.
As CoinDCX looks towards the future, it stands committed to its mission to accelerate the adoption of crypto and web3 applications in India and beyond. The company’s resolve to build and innovate in India for the world stands firm, and with continued support, it aims to contribute to building the future of the internet.
The decision to cut jobs at CoinDCX reflects the broader challenges startups and businesses face in the crypto space. The bear market and regulatory impacts have forced companies to make difficult choices to ensure sustainability. Nonetheless, the company’s optimism about the Indian market and its dedication to contributing to the Web3 ecosystem signal a determined path forward, even in the face of significant challenges.
