Layoffs by Indian startups have surpassed the 30,000 mark since the beginning of 2022, following Byju's announcement of a restructuring exercise this week that will affect over 4,000 employees.
From 2022 to date, approximately 95 startups have laid off nearly 31,965 employees, according to Moneycontrol's layoff tracker, as they aim to reduce expenses and prioritise profitability.
This comes even as the number of layoffs has slowed down in the past few months, raising hopes that the bleak times are coming to an end.
However, in 2023 alone, approximately 49 startups have laid off nearly 13,000 employees. It's worth noting that the actual number of layoffs could be higher, as many startups have been resorting to silent layoffs.
Also read: Life after layoffs: How people are coping after losing jobs in Indian startups
Moreover, while 51 startups laid off employees last year, 49 have already been added to the list in just nine months this year.
Additionally, many startups have executed subsequent rounds of layoffs, including notable ones like Dunzo, Byju’s, Cuemath, and more.
Tipping the scale this year was Byju's, the world’s most valued edtech startup which kicked off a major restructuring effort, which could lead to the elimination of 4,000 to 5,000 jobs under the newly appointed CEO of Byju's' India operations Arjun Mohan. This move took its layoff toll to about 10,000 since the beginning of 2022.
Moneycontrol on Septemeber 27 reported that Fi, a neobanking startup backed by investors like Peak XV (formerly Sequoia's India arm), Temasek, and Alpha Wave Ventures, is laying off 10 percent of its staff. The fintech company is taking this step in order to extend its cash runway to two years amid a worsening funding winter.
Indian startups raised $376 million in private equity and venture capital (PE/VC) funding in August 2023, down from $523 million in July, Moneycontrol had earlier reported citing Venture Intelligence data. This is despite Zepto’s massive $200 million fundraise, which valued the quick commerce company at $1.4 billion.
As the funding winter continues, more companies are expected to make tough decisions to survive.
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