CoinDCX, a prominent player in the crypto industry, is undergoing another round of workforce reductions, as confirmed by an internal email circulated by the CEO, Sumit Gupta. The email expressed regret for the departures and highlighted the rationale behind the decision.
Gupta stated that this step is pivotal in steering the company towards a trajectory of sustainable and profitable growth. Approximately 70 employees, constituting around 12% of the total workforce, will be affected by this move.
In his communication, Gupta acknowledged the challenging landscape faced by startups and businesses globally, accentuated by tough macroeconomic conditions.
The prolonged bear market in the crypto sector and the implications of TDS on domestic exchanges were cited as key factors impacting their volumes and consequently, revenues.
To adapt to this landscape, the company had already initiated proactive measures, encompassing direct cost optimization and investments in automation to bolster efficiency and productivity.
It’s noteworthy that in January, CoinDCX underwent an internal restructuring but denied any layoffs during that period.
CoinDCX achieved unicorn status in August 2021 following a successful Series C funding round that raised $90 million. Subsequently, in April 2022, the company’s valuation surpassed $2 billion after securing an additional $135 million in funding.
In the past year, regulatory scrutiny led to the Enforcement Directorate summoning several Indian cryptocurrency firms, including CoinDCX, to investigate potential violations of the Foreign Exchange Management Act (FEMA)
#CoinDCX lays off 71 employees, as the startup looks to steer the business towards profitability.@Rish_Bhat reports.https://t.co/sPCOlfuZKm
— BQ Prime (@bqprime) August 22, 2023
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