Mumbai, July 31: Tech layoffs and layoffs at startups have concerned those who relate to the sectors. This year, tech giants have adopted different strategies to cut jobs to control their expenses, restructure their businesses, or for other reasons such as slowing demand, business closure, automation, etc. Most tech layoffs were announced in 2024 due to restructuring their businesses.
Startups have grown significantly in India and are ready to adopt technological advancements such as AI and automation. However, the sector has struggles of its own which leads to the companies reduce the headcounts. Comparatively, startups witnessed fewer jobs cuts in 2024 than 2023. Still, the rising startups were struggling to cut nearly half of the jobs compared to last year's numbers. Tinder Layoffs: Online Dating App Parent Company Match Group To Lay Off 6% Employees Amid Activist Investors Seek Changes.
Global Tech Layoffs in 2024 Affected Thousands of Jobs
Starting in January, the global tech companies have laid off thousands of people that also affected people in India or Indian-origin people working abroad. The tech layoffs were implemented largely due to the restructuring exercise. According to a layoff tracking website, Layoffs. fyi, nearly 1,09,297 employees have been laid off so far in 2024 by the 380 companies. UKG, Microsoft, Google, Tesla Automotive, UKG, and PwC were the most notable companies that reduced their workforces.
Electronic vehicle maker Fisker filed for bankruptcy last month, Rivial began cutting employees, and edtech companies, such as Paytm, announced major plans to reduce their workforce. Unacademy laid off 250 people, and BYJU's cut 500 people.
Startup Layoffs in India Reduced in 2024 Compared to 2024
In India, startup layoffs were reduced from January to June 2024 compared to the same time last year. From the beginning of 2024 to June 2024, the job cuts in the startup sector affected around 11,250 people, according to a report by LiveMint. During the same time, in 2023, Indian startups laid off around 21,000 employees. The numbers suggest that the workforce reductions halved this year. Intel Layoffs: US-Based Tech Giant To Reduce Significant Workforce by Cutting Thousands of Jobs as Part of Efforts To Save Cost.
The report cited ET commenting that the intensity of the job layoffs and the number of people were reduced. It further said that despite reducing startup layoffs, the sector would have yet to wait to see good days. The hiring in the industry has improved since 2023; however, layoffs are still around the corner as the major tech companies, including Paytm, Flipkart, BYJU's, Healthify, Unacademy, and others, laid off several employees.
(The above story first appeared on LatestLY on Jul 31, 2024 01:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).