Domestic crypto unicorn CoinDCX has fired 12% of its workforce or 71 employees amidst global tech layoffs. The company has cited "dwindling macroeconomic conditions coupled with higher TDS (tax deducted at source) on domestic exchanges" as the reasons behind this decision.
"As you all know, startups and businesses globally are going through challenging times due to tough macro conditions, more so in crypto because of the prolonged bear market and 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," says the company.
"We also reprioritised certain initiatives/products in line with our long-term business strategy. 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 profitable and sustainable growth," it adds.
According to the company, the impacted employees will be provided with a “support package” consisting of severance pay equivalent to the full notice period, an additional one month's salary, variable pay and incentive dues, encashment of unutilized leaves, the extension of health insurance and wellness benefits and access to counselling support.
Notably, in the first half of 2023, more than 17,000 employees have been laid off amidst funding winter, according to staffing firm CIEL HR. As per a PwC report, funding amongst domestic start-ups declined by 36% to $3.8 billion across 298 deals in the first half of 2023 as against $5.9 billion in H2 of CY22. This is the lowest funds raised by domestic start-ups in the last four years. To manoeuvre through funding winter, most domestic startups are embracing frugality by resorting to cost-cutting measures including reducing the workforce.
Several domestic startups such as Unacademy, Byju's, Spinny, and Koo have also announced layoffs in the past few months as they grapple with dwindling revenues. Earlier this year, telecom major Vodafone Group announced to trim 11,000 jobs in the next three years with both headquarters and local markets simplification as the Berkshire-based company looks to become "leaner and simpler." LinkedIn and Cognizant have also laid off 716 and 3,500 employees, respectively. In January, Microsoft announced it would lay off about 10,000 employees, or 5% of its workforce by the end of the third quarter of 2023. Amazon has laid off 27,000 employees. Google also sacked around 12,000 roles in one of the highest headcount reductions in the past year.