Cryptocurrency unicorn CoinDCX lays off 12% of its total workforce

Mumbai-based crypto exchange platform CoinDCX has slashed 12% of its workforce following harsh macro conditions and the challenging times startups are facing globally.

"Today, we are making the difficult decision to reduce the size of our team by about 12%, and some of our incredibly talented team members will be parting ways with the organisation," founders Sumit Gupta and Neeraj Khandelwal said in a company blog post.

They highlighted the tough conditions for the crypto market, especially the prolonged bear market and the impact of TDS on domestic exchanges. "These factors had a significant impact on our volumes and thus revenues. To adapt, we undertook several proactive measures, including direct cost optimisation and investment in automation to drive efficiency and productivity," they added.

CoinDCX clarified that it is the first time the company is laying off employees. Earlier in January, it went through an internal restructuring and denied any layoffs at the time.

The company aims to reprioritise certain initiatives/products in line with its long-term business strategy.

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"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," the blog read.

To support impacted employees, CoinDCX is giving a support package consisting of severance pay equivalent to the full notice period, an additional one month of salary, variable pay and incentives dues, encashment of unutilised leaves, an extension of health insurance and wellness benefits, and access to counselling support.