Tech Layoffs 2024: Indian Startups Let Go 10,000 Employees This Year So Far To Focus on Cost-Cutting, Swiggy, Paytm, Flipkart Lead
According to reports, around 10,000 employees working in Indian startups were laid off amid cost-cutting and restructuring. Paytm, Flipkart and Swiggy were among the top companies that laid off more workers in 2024.
Mumbai, June 17: Startup layoffs have been concerning for the industry since the beginning of the year. 10,000 employees were reportedly laid off by the Indian startups in 2024 amid restructuring, constraints on funding and other reasons. Flipkart, Ola, Swiggy, Paytm and others were among the top companies that announced massive job cuts from different departments this year. Paytm's struggles started after RBI ban and fintech major was reportedly cutting over 5,000 to 6,300 people in 2024. On the other hand, BYJU's struggled amid various for implementing job cuts, salary delays.
Reports indicate that Swiggy has laid off around 400 employees, while Ola, led by Bhavish Aggarwal and on the cusp of an IPO, is set to let go of 600 people in its final stages. The job cuts at Ola Cabs affected about 200 individuals in late April which were part of a larger restructuring effort by the companies. Despite a slowdown in their growth compared to previous years, Swiggy and Ola are aiming to streamline their operations in the face of economic uncertainties. Moovit Layoffs: Israel-Based Journey Planning Service Provider To Lay Off 10% of Its Workforce To Focus on Core Business and Increase Profitability.
Indian startups also adopted cautious hiring practices to improve their bottom lines in their early lifecycle. The reports mentioned that there was a reduction in layoffs; however, the startups say that the sector remained challenging. According to a report by ET Now, venture-funded companies reduced their workforce in the past six months to save costs. These included companies like Ola, Swiggy, BYJU's, Cult.fit, Pristyn Care, etc.
Many companies adopted silent layoffs without officially informing or cautioning the staff members. The reports emphasised that nearly 40-50% of layoffs in India this year had been silent, citing Anshuman Das, CEO of Longhouse Consulting. Besides cost cutting, the companies had hired new replacements at lower salaries. It was aimed at reducing costs without compromising the quality of the work. Paytm Layoffs: Employees of Fintech Major Complain About Forced Voluntary Resignations and Informal Processes, Says Report.
Despite layoffs in 2024, the industries expect slow growth and signs of recovery. Online delivery and quick-commerce platforms like Zomato and Nyka hint at the rise in potential hiring this year. Amid the current uncertainty, the sectors remain hopeful, resilient and adaptable with their stakeholders. Anshuman Das reportedly anticipated more layoffs in the second half of 2024, when up to 5,000 people might be handed pink slips. In May 2024, funding in startups increased 62% compared to last year to $817 million. In March, it was $1.97 billion, lower than the previous year's same month with $3.2 billion.
(The above story first appeared on LatestLY on Jun 17, 2024 11:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).