Cryptocurrency exchange WazirX lays off 40% staff. What went wrong?

cryptocurrency

Indian Market
by 5paisa Research Team Last Updated: 2022-10-03T09:58:10+05:30

The Indian government’s clampdown on cryptocurrency exchanges has been exacting a heavy price on the industry. 

The latest exchange that has downsized operations is WazirX, which has laid off 40% of its employees. 

As many as 50 to 70 of 150 WazirX employees have been laid off, CoinDesk reported, citing sources.

The employees who were laid off were informed on Friday that they would be paid for 45 days, and would not be required to report to work and their access was withdrawn, according to a Mint report.

What did WazirX actually say on the sackings?

WazirX said in a statement that the crypto market has been in the grip of a bear market because of the current global economic slowdown. 

"The Indian crypto industry has had its unique problems with respect to taxes, regulations and banking access. This has lead to a dramatic fall in volumes in all Indian crypto exchanges," the company said.

"As India's No 1. exchange, our priority is to be financially stable and to continue serving our customers. To achieve this, we've had to reduce our staff to weather the crypto winter. This situation is similar to the trying times the industry faced in 2018; at that time, we doubled down and built our innovative P2P engine," the statement said.

People from which departments have been fired?

The workforce has been cut from various departments including customer support, HR, and other departments. Managers, Analysts, Associate Managers/Team leaders were among those laid off said one the sources. The entire public policy and communication team was also fired, Mint said, citing an unnamed employee. 

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