Indian Startups fired 10,000 employees this year

There have been significant layoffs in Indian startups this year. Around 10,000 employees have been laid off by Indian startups in 2024 (as of June 2024).

Startups are facing difficulty securing funding, which is leading to cost-cutting measures like layoffs. Companies are shifting their focus towards achieving profitability at an earlier stage, leading to a more cautious hiring approach. While concerning, the number of layoffs in 2024 is lower as compared to the previous year (around 15,000 in the first half of 2023 alone).

In the past six months, several venture-funded companies in India, including Swiggy, Ola, Cultfit, Licious, PristynCare, and Byju’s, have implemented significant job cuts as part of cost-cutting measures. These layoffs reflect the broader trend of startups recalibrating their strategies to address financial challenges and prioritize sustainability.

According to Longhouse Consulting data, the first half of 2024 has seen fewer layoffs compared to the preceding six months of 2023, during which around 15,000 employees were fired, and the first half of 2023, which recorded 21,000 job losses.

An emerging trend in 2024 is the rise of 'silent layoffs,' where companies quietly reduce staff without official announcements. This approach aims to minimize negative publicity and maintain employee morale amid challenging times. Anshuman Das from Longhouse Consulting notes, "About 40-50% of this year's layoffs have been 'silent,' compared to 20% last year.

Despite the wave of layoffs, there are signs of recovery in the Indian startup ecosystem. Startups anticipate a gradual improvement in the second half of 2024, supported by increased early-stage funding and upcoming public listings. Promising sectors like fintech and quick commerce, with firms such as Zomato and Nykaa, hint at potential hiring upticks in the near future.

The Indian startup ecosystem is showing signs of recovery, with a gradual yet hopeful trajectory anticipated for the second half of 2024. Increased early-stage funding, upcoming public listings, and promising sectors like fintech and quick commerce are driving positive momentum. While the job market adjusts and laid-off workers explore new opportunities, the mental impact of layoffs continues to shape the hiring landscape.

 
Strategic shifts in hiring practices and renewed investor confidence are essential for stabilizing the sector amidst ongoing uncertainties. By fostering resilience and adaptability, startups aim to navigate financial challenges, restructure effectively, and pave the way for sustained growth and innovation.