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Startup layoffs unlikely to spread to other sectors, says Monster India CEO Garisa

Sekhar Garisa expects startup layoffs to continue but is positive on hiring across sectors, with a robust outlook on the IT sector

June 21, 2022 / 01:54 PM IST
Representative image

Representative image

Monster India chief executive officer Sekhar Garisa has an overall stable outlook on jobs even as a wave of layoffs rattles the startup ecosystem in the country.

"Any news regarding startups tends to get amplified," said Garisa, whose company comes out with the Monster Employment Index (MEI) every month, in an interview to CNBC-TV18 on June 21. MEI is a broad and comprehensive monthly analysis of online job postings.

As Moneycontrol has been writing, startups have let go more than 10,000 employees this year, so far, as funding winter sets in. There has been a marginal dip in overall hiring from April to May across startups and other companies.

Garisa, however, said he was not reading too much into the startup layoff as the sector's contribution to overall jobs was low. The Monster India CEO said even within the startups that let people go, the layoffs represented a very small portion of the workforce.

Also read: Startup layoffs to continue as exuberance takes a break

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Moneycontrol has reported that the layoffs have primarily been in sales and marketing roles, which are growth-focused positions.

The layoffs represented a pullback on growth initiatives by startups that were trying to explore different business models and new frontiers but failed to gain traction, Garisa said.

He expects startups to further trim the workforce, saying there was a shift towards catering to the bottom line and sustainable growth.

He, however, remained positive on hiring across sectors, with a robust outlook on the information technology industry. "We have not seen any of our large customers pulling back on their hiring plans," Garisa said. Apart from the tapering salary hikes, overall hiring would not change much, he added.

Speaking about the talent management space, the Monster India CEO said that expected tech disruptions with CEOs relooking at their talent strategies to cater to location flexibility, structural costs and full and flexi-time models.

After delivering its best-ever quarter, Quess Corp, which owns Monster India, remains bullish on the company's prospects with many of its businesses contributing to a better margin profile.
Hriday Sahjwani
first published: Jun 21, 2022 01:43 pm
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