Indian startups have crossed the mark of laying off 30,000 employees since the start of 2022. Yeah, you read it right! It was Byju who announced the layoff of over 4,000 employees due to a restructuring exercise this week. However, if we have seen the layoff trend from 2022 to date, then we can say almost 95 startups have laid off approximately 31,965 employees, according to a report on Moneycontrol. The idea behind the job-cutting program is to lower the expenses and gain more profits with the existing workforce.
Although it is reported that the layoffs have reduced in the last few months because the bleak times are concluding, however, Byju’s announcement sent shocking waves across the industry. In 2023 itself, almost 49 startups laid off almost 13,000 employees. Isn’t it saddening? But that is the truth. The actual number of people losing their jobs may just be higher than the ones reported here because many startups ask their employees to leave on their own, opting for silent layoffs.
Many startups like Cuemath, Dunzo, and Byju’s have not just laid off once but opted for cutting jobs in many subsequent rounds since last year. Byju’s which has been one of the top edtech startup companies since last year has announced a major restructuring exercise recently under the leadership of the newly appointed CEO – of India Operations Mr. Arjun Mohan. This has itself laid down 4,000 to 5,000 jobs. Not just this, but since the last year since Byju’s hit headlines for all the wrong reasons, the company has almost laid off another 5,000 people, thus taking the layoff total to 10,000 in 2022-23.
It was recently reported on Moneycontrol how Fi, a neobanking startup supported by investors like Peak XV (formerly Sequoia’s India arm), Temasek, and Alpha Wave Ventures has announced a layoff of 10% of its staff. The fintech company decided to take this step so that they can enhance their cash runway to two years despite a worsening situation in terms of funding winter.
Indian startups were able to raise only $376 million in private equity and venture capital – PE/VC funding in August 2023. This was lower than $523 million in July 2023. This data comes despite Zepto’s huge $200 million fundraising activity that made the value of the quick commerce company at $1.4 billion.
As the funding winter goes ahead, there are many companies that are going to make challenging decisions to survive in the business world. If you are someone who has been affected by such startup decisions, then don’t lose hope. If one door closes, there is always another door that can open for your dreams to succeed.
You can simply reframe your job propositions and enhance your resume using different tools and techniques. In your CV, make sure to mention only the true facts that will allow you to win the trust of prospective employers. Don’t badmouth about your previous organization of why they fired you or laid off you despite giving high performance in your career. Just live in the present moment and go with the flow.