As per Layoff.fyi, Indian technology startups have scaled back on layoffs this year, with a reduction of over 2,000 employees in the first quarter compared to last year, marking a 60% decrease.
This decline aligns with reduced venture capital, according to the tracking website.
In the first quarter of 2023, 43 firms axed 5,358 employees, with Byju’s, an edtech company, leading the pack by releasing 1,500 workers across multiple departments such as production, design, and engineering.
Foodtech giant Swiggy undertook a company-wide restructuring, leading to the layoff of 380 employees, while social media platform ShareChat downsized its workforce by terminating 500 employees, approximately 20% of its total staff.
Furthermore, Ola, MediBuddy, DealShare, MyGate, UpGrad, and Pristyn Care each reduced their workforce by more than 100 employees.
During the first quarter of this year, 11 startups, including prominent e-commerce player Flipkart, initiated layoffs. Flipkart laid off approximately 1,100 employees during its annual performance evaluations.
Swiggy, another major player, laid off 400 employees in January, equating to almost 7% of its workforce. Additionally, companies like InMobi, Cure.fit, and Pristyn Care also implemented staff reduction measures.
The hiring and layoffs within startups frequently reflect the funding climate and overall market liquidity. In the previous year, during a funding shortage, approximately 16,400 employees were laid off across 111 companies.
Conversely, in 2021, a year characterized by heightened funding, layoffs decreased markedly to nearly 4,000, according to the report.
With funding rounds returning to normalcy this year, especially for early-stage companies, it’s expected that there will be fewer layoffs and longer intervals between them.
In the first quarter, early-stage funding saw a 28% increase, according to recent data from Tracxn Technologies, a capital market analysis company cited by Business Standard. However, seed-stage funding decreased by 7%, and late-stage funding dropped by 46% compared to the same period last year.
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