Layoffs by Indian startups have crossed the 30,000 mark since the beginning of 2022.
Just recently Byju’s announced a “restructuring exercise” which will impact over 4,000 employees.
From 2022 till date, approximately 95 startups have laid off nearly 31,965 employees, according to Moneycontrol’s layoff tracker.
Bleak scenario
They have cited plans to reduce expenses and prioritize profitability.
Even though the layoff numbers had slowed in the last few months, this comes as an unwelcome surprise.
This year alone, approximately 49 startups have laid off nearly 13,000 employees.
Notably the actual number of layoffs could be higher, as many startups have been silent about the numbers.
Silent layoffs
The shady practice refers to silent layoffs, instead of the ‘restructuring’ such firms refer to.
Apparently Meta and Google, among other big tech companies have such policies in place.
The most common way they resort to is to give employees 30 days to find a new role at the same company.
If they can’t, they are asked to leave.
The biggies
Many startups have executed subsequent rounds of layoffs, including notable ones like Dunzo, Byju’s, Cuemath, and more.
The biggest offender was Byju’s, the world’s most valued edtech startup which started a huge restructuring effort, which could lead to the elimination of 4,000 to 5,000 jobs under the newly appointed CEO of its India operations Arjun Mohan.
Fi, a neobanking startup is laying off 10 percent of its staff which it said it is doing in order to extend its cash runway to two years amid a worsening funding winter.
Layoffs despite massive fundraises
Indian startups raised $376 million in private equity and venture capital (PE/VC) funding in August 2023, down from $523 million in July, food for thought.
This is despite Zepto’s massive $200 million fundraise, which valued it at $1.4 billion
Unfortunately it appears more companies are likely to make similarly tough decisions to survive.
