Saturday, April 20, 2024

Business

Homegrown crypto exchange CoinDCX lays off 12% of its workforce

IANS | August 22, 2023 04:55 PM

NEW DELHI: Homegrown crypto exchange CoinDCX on Tuesday said it is laying off about 12 per cent of its workforce, as the crypto market continues to navigate the tough macro conditions and impact of TDS on domestic exchanges.

CoinDCX Founders Sumit Gupta and Neeraj Khandelwal said in a blog post that to help the impacted employees, “we have put together a support package consisting of severance pay equivalent to the full notice period, additional one month of salary, variable pay and incentives dues, encashment of unutilised leaves, extension of health insurance & wellness benefits and access to counseling support”.

“We had to make a tough choice that involved bidding farewell to some of our brilliant and dedicated team members at CoinDCX. We are deeply sorry for this, and we bear its weight, both in responsibility and in emotion, ” they added.

The company said that prolonged bear market and impact of TDS on domestic exchanges had a significant impact on its volumes and, thus, revenues.

“To adapt, we undertook several proactive measures, including direct cost optimisation and investment in automation to drive efficiency and productivity. We also reprioritised certain initiatives/products in line with our long-term business strategy, ” said the founders.

“To further ensure we run as a healthier business way forward, the current situation demands that we work with a more efficient team structure. To this end, we have made the difficult decision to resize certain teams and to steer the business towards a profitable and sustainable growth, ” they added.

Last year, CoinDCX and other major crypto exchanges were asked by the Enforcement Directorate (ED) to submit documents in connection with a Foreign Exchange Management Act (FEMA) case.

CoinDCX had said in a statement they received queries from various government agencies and our “approach has always been one of transparency”.

The founders also said that no further team reduction is planned as of now.

“To ensure that, we have had multiple thorough and deliberate discussions and worked closely with the senior leaders in the company, ” the founders wrote.

They also appealed to the crypto and web3 domain startups to reach out to the impacted employees.

“If you're building a startup in the crypto and web3 space, you won't find a more dedicated, skilled, and exceptional group of individuals than the ones parting ways with us today. These professionals are some of the very best in the industry, ” they wrote.

Have something to say? Post your comment