Cryptocurrency exchange CoinDCX has laid off about 12 per cent of its workforce as a prolonged bear market and TDS impact weigh down volumes and revenue, the founders said in a blog post.
The company has a total workforce of 722 employees, according to LinkedIn. Founders Sumit Gupta and Neeraj Khandelwal underscored that start-ups and businesses globally are going through challenging times due to tough macro conditions, more so in crypto, because of the prolonged bear market and the impact of TDS on domestic exchanges, and these factors had a significant impact on volumes and, thus, revenues.
“To ensure we run as a healthier business, 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 steer the business toward profitable and sustainable growth,” the founders said.
CoinDCX, in a bid to adapt to current market conditions, has also undertaken several proactive measures, including direct cost optimisation and investment in automation to drive efficiency and productivity. It has also reprioritised certain initiatives/ products in line with its long-term business strategy, according to the blog post.
“We’ve tried our utmost to explore various alternatives, but current market realities compel us to take some tough decisions. We believe that this is the right thing to do for the business,” the founders noted.
The company will be providing a support package to the laid-off employees 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 and wellness benefits, and access to counselling support.