Amid the crisis in the crypto industry, with the digital currency market facing the dangers of an extended bear market, many cryptocurrency companies are looking to cut costs and diversify their operations.
CoinSwitch, a crypto exchange based in India, has had to cut its staff by 8%, according to its representatives. This is due to a number of issues as well as the company's desire to stay afloat.
Coingeek reports that the cuts affected employees in their client support team. In total, 44 people were affected. According to CoinSwitch, a voluntary severance agreement was reached with the employees. Before deciding to make the layoffs, the exchange tried several options, including reassigning support team members to other departments. The downsized employees received a four-month severance package, and the exchange promised to reinstate the entire team when revenues increased.
CoinSwitch commented on the news: "We continuously evaluate our business to stay competitive, prioritizing innovation, value, and service for our customers. To that end, we right-sized our customer support team to align with the present volume of customer queries on our platform".
The CoinSwitch exchange is currently experiencing financial problems: trading volumes have dropped by 70%, and the number of active users has also decreased. Against this backdrop, the company is finding it difficult to meet India's strict requirements to pay 30% taxes and additional 1% tax deductions.
CoinSwitch has announced plans to diversify its business and launch new projects outside of digital currencies. CEO Ashish Singhal said the company is in talks with regulators to launch seven core financial products in the fourth quarter of 2023: stocks, bonds, ETFs, fixed deposits, and mutual funds.
In addition to Coinswitch, the unfavorable macroeconomic conditions also affected the CoinDCX exchange, which cut its staff by 12%. CoinDCX said in a release that the exchange is struggling to cope and stay afloat amid shrinking reserves and lower trading volumes.
Indian exchange CoinDCX has had to resort to job cuts and automation of work processes to improve efficiency and productivity.
Further reading: French regulator steps up pressure on Worldcoin.
