Excerpt from Indiatoday Post Article, Published on Apr 10, 2024
In a promising turn of events for the IT sector, Indian startups are experiencing a notable decline in employee layoffs, signaling a potential relief from the turbulence witnessed in recent times. According to recent data from layoffs.fyi, a tracking website, the first quarter of 2024 saw a 60 percent reduction in job cuts compared to the same period last year.
During this quarter, over 2,000 employees were laid off across 43 companies, marking a significant slowdown in the trend of layoffs, particularly in the tech startup ecosystem. This decrease is attributed to the reduced availability of venture capital funding, which has prompted startups to adopt more conservative approaches to workforce management.
Among the notable layoffs, Byju’s, a prominent edtech giant, stood out with 1,500 job cuts spanning various departments. Other startups like ShareChat, Ola, MediBuddy, DealShare, MyGate, UpGrad, and Pristyn Care also implemented workforce reductions, albeit on a smaller scale. However, the impact of layoffs extended beyond startups, with established players like Flipkart and Swiggy also announcing job cuts. Flipkart’s annual performance reviews led to approximately 1,100 job cuts, while Swiggy downsized its workforce by 400 employees, constituting 7 percent of its total staff.
Analysts attribute the cyclical nature of hiring and layoffs in startups to funding trends. The previous year, characterized by a “funding winter,” saw a surge in layoffs, while periods of investment boom resulted in comparatively lower job cuts. Meanwhile, on a global scale, tech giants like Google, Apple, and Amazon continue to undergo restructuring exercises leading to job cuts. In April 2024, Apple laid off over 600 employees following the discontinuation of certain projects, while Microsoft and Amazon also announced significant layoffs as part of their strategic realignment efforts.
Despite these developments, companies are striving to support affected employees through measures such as offering severance packages, facilitating transitions to new roles, and prioritizing areas of growth and innovation.
The slowdown in layoffs within the Indian startup ecosystem reflects a cautious optimism amidst ongoing economic challenges, signaling a potential stabilizing effect in the IT job market.
To delve deeper into this topic, please read the full article on Indiatoday
