Recently, the Indian cryptocurrency exchange CoinSwitch reduced its customer support team by over a third due to sluggish market activity. About three weeks ago, they cut 44 jobs, which is nearly 7% of their total employees. The company has also hired around 60 people in areas such as product tech and compliance since April, leaving them with approximately 640 employees even after the layoffs. The customer support team still consists of 82 members.
CoinSwitch isn’t the only company adapting to the changing landscape. In a recent report by Todayq News on August 22, 2023, CoinDCX, a rival exchange, is downsizing its workforce by 12%, letting go of 71 employees due to declining revenues caused by a prolonged bear market and strict tax regulations. The exchange, founded in 2018, has played a prominent role in India’s crypto landscape.
This move comes as a response to a weak crypto market and India’s tax regulations, which have led to lower trading volumes and revenue. India’s crypto taxes include a 30% tax on crypto profits and a controversial 1% tax deducted at source (TDS) on all transactions since February 1, 2022.
A spokesperson from CoinSwitch stated that they would gladly rehire those affected when volumes increase and new roles become available. The news about these job losses was reported by the local Indian outlet. To support the impacted employees, CoinSwitch has offered severance packages and additional benefits for up to four months based on their tenure.
According to research, around 4,695 cryptocurrency workers had lost their jobs by November 13. This ranks the crypto industry in the top 10 for tech layoffs in 2022. However, the tech industry as a whole lost about 100,000 jobs during the same period.
Looking at these numbers, it’s clear that the crypto industry is facing challenging times. While the story about job losses in crypto might seem crucial for the people experiencing it, considering the entire industry reveals a more complex situation.