CoinSwitch, a prominent Indian cryptocurrency exchange, has recently downsized its customer support team significantly, citing the prolonged market downturn as the driving force behind this strategic move.

Approximately three weeks ago, the company decided to lay off 44 employees from its customer support division, which had previously consisted of 126 dedicated members. This reduction represents a decrease of just under 7% in CoinSwitch’s total workforce, a fact confirmed by a spokesperson from the company to CoinDesk. CoinSwitch had been experiencing steady growth in its team, having onboarded around 60 new employees since April. These hires primarily focused on strengthening the product technology and compliance departments. Prior to this reduction in force, the firm’s total employee count had reached approximately 640, while the customer support team currently retains 82 members.

CoinSwitch is not the only cryptocurrency exchange in India that has found it necessary to adapt to the evolving market dynamics. Earlier this month, a competing platform, CoinDCX, also underwent a workforce reduction, trimming its staff by roughly 12%, which resulted in the layoff of 71 employees. Both platforms have grappled with the challenges posed by the bearish cryptocurrency market, compounded by India’s rigorous tax policies on crypto transactions. These policies have contributed to reduced trading volumes and, consequently, diminished revenue. Notably, India has introduced substantial taxes on cryptocurrencies, including a 30% tax on crypto profits and a more contentious 1% tax deduction at the source (TDS) on all transactions since February 1, 2022.

A spokesperson for CoinSwitch expressed the company’s willingness to rehire those affected by the layoffs should trading volumes and market conditions improve. “As and when volumes increase and new roles become available, we will be happy to welcome back those impacted,” the spokesperson affirmed.

The job reductions at CoinSwitch were initially reported by the Indian news outlet Moneycontrol. According to an insider source, CoinSwitch has extended severance packages and supplementary benefits to the impacted employees. The duration of these benefits will be based on the individual’s length of service with the company.

Disclaimer: This article is based on information available as of August 29, 2023. It is intended for informational purposes only and should not be considered as financial or investment advice. Readers are encouraged to conduct their research and seek advice from financial experts before making any investment decisions related to cryptocurrencies or digital assets.