CoinSwitch, an Indian cryptocurrency exchange, laid off 44 employees from its customer support team, constituting approximately 7% of its total workforce. The company cited a significant reduction in customer queries and a broader slump in the cryptocurrency market as the primary reasons for the downsizing.
Indian crypto exchange CoinSwitch cuts support team in response to market downturn
A spokesperson for CoinSwitch stated that the layoffs were a strategic move to “right-size” the customer support team and align it with the current volume of customer queries. The company emphasized its commitment to staying competitive by prioritizing innovation, value, and service for its customers.
Furthermore, the layoffs came as customer queries have dwindled compared to the peak of the crypto market in 2021. An anonymous source familiar with the development also confirmed that the layoffs were necessary given the current market conditions.
Layoffs follow similar moves by other crypto exchanges, signaling industry-wide challenges
CoinSwitch’s decision to reduce its workforce is not an isolated incident in the crypto industry. Earlier this month CoinDCX, another Indian cryptocurrency exchange, laid off 12% of its workforce, or 71 employees, citing a prolonged bear market for cryptocurrencies and the impact of Tax Deducted at Source (TDS) on domestic exchanges. These layoffs indicate a broader trend of challenges facing the crypto industry, particularly in India, where regulatory uncertainties have also contributed to market volatility.
Over the last year, CoinSwitch stated that many support team members had been absorbed into other functions within the company based on the suitability of their skills for other roles. The company also expressed its willingness to welcome back those impacted by the layoffs, stating, “As and when volumes grow, and we open new roles, we will be happy to welcome back those impacted.”
CoinSwitch’s layoffs come at a time when the cryptocurrency market is grappling with multiple challenges, including regulatory hurdles and market volatility. The decision to downsize the workforce could be seen as a cautionary move, reflecting the company’s attempt to adapt to a changing landscape.
Since the implementation of a 30% tax on profits from Virtual Digital Assets (VDA) and a 1% Tax Deducted at Source (TDS) on trades, the trading volume across exchanges has decreased. Additionally, the extended bear market has exacerbated the challenges faced by the crypto industry.
