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This year, as many as 11 startups laid off employees in the first quarter, including Flipkart
Indian technology startups laid off more than 2,000 workers in the first quarter of the calendar year, but that’s 60 per cent less compared to the same period last year, according to a tracking website.
The layoffs declined occurred at a time when venture capital reduced, according to layoffs.fyi. Data showed that during the first quarter of 2023, as many as 43 companies laid off 5,358 employees. Edtech firm Byju’s had the largest chunk, firing 1,500 employees across design, engineering and production teams.
Foodtech unicorn Swiggy laid off 380 employees in a company-wide restructuring, while social media platform ShareChat fired 500 employees or nearly 20 per cent of its staff. Ola, MediBuddy, DealShare, MyGate, UpGrad, and Pristyn Care laid off more than 100 employees each.
This year, as many as 11 startups laid off employees in the first quarter, including Flipkart. The ecommerce company laid off about 1,100 employees as a part of its annual performance reviews. Swiggy, the online food delivery company, laid off 400 employees or nearly 7 per cent of its workforce in January. Companies such as InMobi, Cure.fit, and Pristyn Care were also on the list.
For new-age startups, the cycles of hiring and layoffs are tied to funding rounds and the prevailing availability of capital in the market. Last year, amid the peak of a funding winter, approximately 16,400 employees were laid off from 111 companies, while, during 2021, a year marked by a surge in funding, layoffs amounted to nearly 4,000.
As funding rounds begin to normalise again this year, at least for early-stage companies, layoffs are expected to be fewer in number and farther apart.
According to latest funding data from Tracxn Technologies, a capital market company, early-stage rounds saw a rise of 28 per cent in the first quarter, while seed-stage saw a decline of 7 per cent and late-stage rounds were down by 46 per cent over the same period last year.
First Published: Apr 09 2024 | 11:20 AM IST
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