After such a turbulent 2022, the difficult period for start-up employees extends into 2023 as many businesses, including well-funded ones, issue pink slips as funding runs out. According to Money control data, 14 Indian companies laid off over 2,100 workers in the first three weeks of 2023.
The number of layoffs in this period has surpassed last year’s three-week average of around 1,060, as more businesses resort to layoffs in an effort to stay afloat amid a stubborn funding winter.
In the first three weeks of 2023, the number of startup layoffs exceeded 2,100.
Start-ups such as Medibuddy, Swiggy, and Sharechat have joined the ranks of companies that have laid off over 20,500 employees since 2022.
The massive layoffs began in early 2022, after a year of forceful recruitment and increased personnel costs as tech compensation packages skyrocketed in 2021, at a time when new-age tech startups led the talent war to support their unprecedented growth, with funds pouring into the Indian start-up ecosystem.
Over 60 firms have made mass layoffs of staff since the beginning of 2022, citing financial shortages and restructuring. Some have placed the responsibility for the layoffs on the performance of the employees, calling the practice typically.
Start-ups that were on recruiting binges last year in order to fund their rapid development ended up with a surplus of poor talent at a time when the ecosystem pivoted away from investing in growth to sustainability at all costs.
Some have been forced to make major cuts.
Some of these start-ups would have to make difficult choices that affected them more than others. Since 2022, over six companies on the list have laid off more than 1,000 workers.
Since the beginning of 2022, over six people on the list of start-ups have let go of more than 1,000 employees.
Notably, four of these business start-ups like Lido Learning, Byju’s, Unacademy, and Vedantu belong to the edtech industry or were the worst-hit startup of last year’s startup party.
High-valued and well-funded edtech unicorns Byju’s, Vedantu, and Unacademy had to lay off a significant portion of their workforces in an effort to survive, while Sahil Sheth-founded Lido Learning went bankrupt, leaving several hundred employees, hundreds of family members, and a number of its debt holders in dilemma.
Source Credit: moneycontrol