Since the start of 2022, Indian startups have terminated 30,000 jobs

Indian startups have faced a significant workforce reduction, with over 30,000 employees being laid off since the beginning of 2022. According to Moneycontrol, approximately 95 startups have implemented these measures, aiming to cut costs and prioritize profitability.

Although there has been a slight slowdown in layoffs in recent months, the situation remains concerning. In 2023 alone, 49 startups have let go of nearly 13,000 employees, with the actual numbers potentially higher due to silent layoffs becoming a common practice among startups.

The trend has been intensified by successive rounds of layoffs carried out by various startups, including prominent names like Dunzo, Byju’s, and Cuemath. Byju's recently announced a significant restructuring effort, potentially eliminating 4,000 to 5,000 jobs, bringing their total layoffs to about 10,000 since the start of 2022.

In a recent development, Fi, a neobanking startup backed by investors like Peak XV, Temasek, and Alpha Wave Ventures, is laying off 10% of its workforce to extend its cash runway amid a challenging funding landscape.

Despite the challenges, the funding winter continues to impact the startup ecosystem. Indian startups raised $376 million in private equity and venture capital funding in August 2023, down from $523 million in July.

This decline comes despite significant funding rounds, such as Zepto’s $200 million fundraising, highlighting the industry-wide struggle to secure investments.

Also Watch: Layoffs 2023: Byju's undergoes major restructuring under new CEO, potential job cuts of 5,000