Layoffs by Indian startups, which started in the beginning of 2022, have crossed the 25,000-mark as more new-age tech companies take the cost-cutting route to survive the funding winter. From 2022 till date, about 94 startups have laid off close to 25,805 employees in an attempt to reduce expenses and extend their runway to focus on profitability, according to Moneycontrol’s layoff tracker.
According to Anshuman Das, co-founder and CEO of Careernet and LONGHOUSE Consulting, the same number of layoffs would not have been as alarming for IT services companies as it employs a large base. “With a lower base of employees working at Indian startups, reabsorption could stand as a problem especially now when job openings are also much lower compared to last year,” he added.
“With no sign of funding coming in, the number could potentially go anywhere near 40-50,000 by the end of the year. This time, you will see a lot of smaller companies also making tough decisions. Earlier when it happened, the late-stage companies with a huge workforce conducted layoffs. So earlier, while there was a larger pool with a smaller number of companies, now there will be a smaller pool with a larger number of companies,” Das said.
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