In an unfolding chapter of layoffs within the Indian startup landscape, CoinSwitch, a crypto exchange backed by Tiger Global, has undertaken a restructuring effort that resulted in the termination of 44 employees.
Restructuring Measures Impacting Workforce
According to CoinSwitch’s LinkedIn profile, the startup currently employs 519 individuals. This implies that around 8% of its workforce has been affected by the recent layoffs.
Customer Support Team Takes the Hit
A spokesperson from CoinSwitch confirmed the layoffs, noting that the customer support team bore the brunt of the restructuring. The affected employees reportedly chose to leave their roles voluntarily.
The spokesperson stated, “We continuously evaluate our business to stay competitive, prioritising 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. This impacted the roles of 44 members of our customer support team, who voluntarily resigned from their roles after a detailed discussion with their managers earlier this month.”
Operations Department Also Impacted
However, reports from sources including Moneycontrol indicate that the layoffs extended beyond the customer support division. Positions across various roles within the operations department were also affected, with roles such as team leads, agents, support staff, senior managers, and quality analysts impacted.
Company Clarifies Organizational Structure
CoinSwitch responded to these reports by clarifying their organizational structure. The company highlighted their flat hierarchy, with the Head of Customer Support directly reporting to the COO. Additionally, they stressed that the Customer Support team also serves as the Customer Operations team, eliminating the need for a separate operations team.
Recent Hiring and Funding Status
Despite the layoffs, an insider source revealed that CoinSwitch had hired 60 new employees since April and was actively recruiting for various positions. The source also claimed that the company had a funding runway of five years.
Background and Challenges in the Crypto Industry
CoinSwitch, founded in 2017, has garnered over $300 million in funding from investors such as Andreessen Horowitz (a16z), Tiger Global, and Sequoia Capital India. Regulatory challenges, particularly heavy taxation measures and government raids on crypto exchanges, have cast a shadow over the industry. These challenges, combined with the broader bear market, have led to downturns in the fortunes of several crypto startups.
Broader Industry Impact
The crypto industry as a whole has faced significant hurdles, including regulatory uncertainty, taxation concerns, and economic shifts. Notably, the recent struggles of FTX, a major crypto player, have raised questions about the industry’s stability.
Larger Ecosystem Impact
Within India, the crypto ecosystem has seen notable players shut down operations, including Pillow, Flint Money, and WeTrade. Regulatory and tax-related issues have also resulted in workforce reductions, exemplified by CoinDCX’s decision to cut 12% of its staff.
The broader challenges faced by the cryptocurrency sector, both globally and in India, continue to shape the operational landscape of companies like CoinSwitch.
