Layoffs Declining? Job Cuts in Tech Startups Dip 60% Between January and March 2024, Companies Laid Off Over 2,000 Employees in Q1, Says Report
Layoffs have reportedly declined by 60% between January and March 2024. The tech startups in India witnessed when the capital funding was reduced.
Mumbai, April 9: Tech layoffs have concerned the IT professionals and employees working in the sector; this year, they started with prominent tech leaders laying off hundreds of employees from different departments amid the economic slowdown, restructuring and adoption of automation or AI. According to a new report, layoffs by Indian tech startups dipped by 60% between January and March of 2024.
Business Standard reported that over 2,000 employees were laid off by Indian startups in the tech sector during Q1 2023. The report highlighted that tech layoffs declined during venture capital reduction. Nearly 43 companies cut 5,358 employees, and edtech firms like BYJU let go of 1,500 employees across multiple divisions such as engineering, production, design, and others. Spirit Airlines Layoffs: Airline Company To Delay Airbus Deliveries and Lay off 260 Pilots To Save Cash; Check Details.
Following the tech layoffs trend, other companies also initiated cutting jobs, resulting in the loss of employment. Swiggy layoffs resulted in 380 people leaving their jobs, ShareChat layoffs led 500 employees to go and this trend was followed by other companies like DealShare, Ola, Pristyn, upGrad, MediBuddy and MyGate, said the report.
In 2024, nearly 11 tech startups reportedly initiated the layoffs in Q1. According to the report, Flipkart layoffs in 2024 were implemented due to the annual performance review, resulting in 1,100 employees leaving the e-commerce company. Moreover, the Swiggy layoffs in 2024 followed, cutting 400 roles in January. The tech layoffs in 2024 also included companies like Cure.fit, InMobi, Pristyn Care, etc. Konica Minolta Layoffs 2024: Japan-Based Multinational Technology Company To Cut 2,400 Jobs As Part of Structural Reform and To Increase Employee Productivity, Say Reports.
The report said that the startup funding in 2024 started to normalise with early-stage companies. Business Standard further said that the layoffs in 2024 will be fewer because of this and farther apart. In the first quarter, the early-stage rounds witnessed a 28% rise in startup funding, according to Tracxn Technologies. It also said a 7% decline in the seed-stage and late-stage rounds was lower by 46% in 2023.
(The above story first appeared on LatestLY on Apr 09, 2024 01:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).