Layoffs in India’s startup ecosystem are noticeably slowing down in 2025, suggesting a cautious recovery following a protracted two-year decline.
Just seven Indian startups have let go of 1,602 workers in 2025, according to layoffs.fyi.
Compared to the same period in 2024, when 20 companies laid off 3,355 employees, this is a significant decrease.
Layoffs in India’s Startup Ecosystem Are Noticeably Slowing Down in 2025
There are indications of improved financial discipline and a more stable funding environment in the decrease in the number of layoffs and companies involved.
Startups are obviously moving away from the mass layoffs observed in prior years, even though the industry is still recovering and not hiring at the boom levels of 2021.
The notion that the startup landscape is stabilizing is further supported by funding trends in Q1 2025.
In Q1 2025, Indian tech startups raised $2.5 billion, up 13% from the previous quarter, according to Tracxn.
Additionally, compared to the same period in 2024, this Q1 funding is 8.7% higher.
India Is Currently the Third-Largest Source of Startup Funding Worldwide
After the US and the UK, India is currently the third-largest source of startup funding worldwide.
Ola Electric Mobility laid off about 1,000 employees and contract workers over the course of two months, accounting for the largest portion of the 2025 layoffs.
Approximately 200 workers were let go by Gupshup, and Cars24 also cut staff.
75 workers were let go by Pocket FM in January as part of a cost-cutting and profitability-boosting initiative.
As part of its yearly appraisal process, ShareChat laid off 27 workers, or less than 5% of its entire workforce.
In contrast, 44 businesses laid off over 9,000 workers in 2024, making it a difficult year for startups.
Multiple industries experienced layoffs in 2024 as a result of a weaker funding climate that refocused attention from rapid scaling to profitability.
Among the well-known companies that laid off employees in 2024 were Byju’s, Paytm, Ola Electric, Flipkart, and Swiggy.
India’s trend of fewer layoffs in 2025 is consistent with a larger global trend in the technology sector.
Just over 51,000 workers have been let go by 112 tech companies worldwide so far in 2025.
This is less than the nearly 79,700 layoffs that were reported worldwide during the same time frame in 2024.
