In the expansive and ever-evolving world of blockchain technology, companies often find themselves in a constant state of adaptation. One such firm riding the waves of change is the reputable Indian cryptocurrency investment platform, CoinSwitch. As market activity plunges, the platform has found itself cutting down its customer support division by more than a third, a move that culminated in the regrettable dismissal of 44 members of staff. This reduction represents just under 7% of the total workforce of CoinSwitch.
Dating three weeks back, these layoffs prompted renewed focus on the company’s other areas. Essentially, since April, the company expanded by hiring around 60 individuals, primarily strengthening their product tech and compliance teams in an effort to increase overall efficiency. Before these recent reductions, the company boasted a workforce of approximately 640 employees. However, the customer support crew is still adequately represented, with 82 members standing to cater to customer needs.
Meanwhile, CoinSwitch’s rival, CoinDCX, has also treaded a similar path, being forced to adapt to the challenging environment. CoinDCX consequently declared a 12% workforce cut, resulting in a job loss of 71 employees. The driving factors behind this move were a combination of the bearish cryptocurrency market and an unfriendly tax policy implemented by the Indian government. This regime, which since its instigation on Feb. 1 2022, heavily burdens crypto traders, levies a 30% tax on crypto profits and a contentious 1% tax deducted at source (TDS) on all transactions.
Despite these events, CoinSwitch seems hopeful about the future. A company spokesperson conveyed that if the volumes of trade rise again and new roles open up, they would gladly welcome back those who were affected by the downsizing. In addition, CoinSwitch has put forth severance packages and added benefits for a span of up to four months, differing based on each employee’s tenure, lending the situation a silver lining.
In conclusion, companies like CoinSwitch and CoinDCX reveal the intricate dance between industry growth and market realities. These may seem like drastic measures but they might be necessary to ensure sustainability, further highlighting the high-stakes reality of navigating the blockchain and cryptocurrency landscape.