More than 12,000 workers in the Indian startup ecosystem and over 22,000 employees in the sector have lost their jobs this year following an economic meltdown.
Startups--especially those that benefited from a pandemic boom--are feeling the pressure as valuations have started to dip, reported Crunchbase. It is much more difficult to raise new funding in this gloomy environment, the companies claimed.
As startups in India keep sacking their employees to navigate through the "funding winter", the country is expected to witness more than 60,000 job losses in 2022 alone, led by edtech and e-commerce platforms.
Nearly 12,000 startup employees have been fired in the country led by companies including unicorns such as Ola, Unacademy, Vedantu, Cars24 and Mobile Premier League (MPL), and others like Blinkit, BYJU's (White Hat Jr, Toppr), Lido Learning, Mfine, Trell, farEye, and Furlanco.
Globally, companies like Netflix, financial services company Robinhood and several crypto platforms have cut down their workforce.
In the world of crypto that has been battered by the economic headwinds, crypto exchanges and firms including Coinbase, Gemini, crypto.com, Vauld, Bybit, Bitpanda and others announced to downsize their workforce.
Elon Musk-run Tesla has cut 10 per cent of its salaried workforce while Pokemon GO game developer Niantic asked 8 per cent-- which accounts for 85-90 staff--of its employees to leave the company.
According to industry experts, at least 50,000 more startup employees are likely to be sacked this year in the name of "restructuring and cost management" while certain startups keep receiving millions in fundings.
(With inputs from IANS)