Recession bells have started ringing, which means industries globally have begun bracing themselves from the market indicators, majorly involving high prices and joblessness.
In the financial crisis of 2008, over 14 million jobs were lost, and this number is only from high-income countries, not including India. With the economic condition growing grim again and an imminent recession expected by top economists, the working class in India can expect job cuts and job losses too.
So far in 2022, the technology sector in India has seen job losses in the scale of over 22,000 skilled workers, and an addition to this figure is widely expected.
Over 12,000 employees in the Indian startup sector have lost jobs in this period. These companies include Ola, Blinkit, Unacademy, BYJU’s (White Hat Jr, Toppr), Vedantu, Cars24, Mobile Premier League (MPL), Mfine, Lido Learning, Trell, farEye, Furlanco and more.
Industry experts see at least 50,000 more startup employees to be fired in 2022 alone despite receiving millions in fundings.
According to the website Crunchbase, startups which initially during the pandemic felt a strong tailwind to their success, is started to feel the heat of the ongoing economic meltdown, as their valuations are falling under severe pressure, thanks to the foreign investors debiting funds/money relentlessly from the Indian space.
Startups have said that it is now more difficult to stay afloat with 100% employee capacity and raise new funding, given the gloomy market environment not at all supporting the sector’s profits.
Even well established tech companies in the US, like Netflix and Robinhood are cutting their workforce size. Not just tech companies, which are highly in sync with market conditions but also well-established industry heavyweight giants like Tesla has been in the process of slashing its salaried workforce by 10% lately.
The picture looks worse for cryptocurrency exchanges like Gemini, crypto.com, Coinbase, Vauld, Bybit, Bitpanda and others, which have announced to reduce their workforces, given the ongoing crypto crash.
Even the highly famous Pokemon GO game developer Niantic has asked 8% of its workforce, amounting to 85-90 people to leave the company.
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