Bloodbath in Indian startups continues

Global figures show no respite either. According to the latest data, 122 tech companies have fired 37,526 employees worldwide in 2023 so far and the days ahead look far from promising.

The year 2022 was one of the worst years for tech roles with 1026 tech firms firing over 1.5 lakh employees worldwide. The worst is nowhere close to over though. According to the data by Laysoff.fyi, in the first few weeks of 2023, 122 tech companies have already fired 37,526 employees as of today. Indian startups remain one of the frontrunners in this list of companies firing employees.

According to reports, more than 1,600 tech employees have already been let go by Indian startups in the first two weeks of 2023. The latest to join the list of firms cutting down the workforce is India's ShareChat, a short video-sharing platform backed by Google and Temasek. The company let go of around 20 percent of its workforce affecting more than 500 employees.

From citing funding constraints to restructuring to 'standard procedure', companies have been citing varied reasons for this bloodbath that is likely to continue amid fears of global recession and changing market situations.

Here is a look at some of the big games in the Indian tech world that announced layoffs in recent times.

ShareChat starts 2023 with fresh round of job cuts

ShareChat had laid off 5 percent of its staff in December last year but has announced more layoffs in the very beginning of 2023. ShareChat, a short video-sharing platform backed by Google and Temasek, had gained much popularity during the Covid pandemic's peak but the growth has since stunted.

The company laid off around 20 percent of its workforce affecting more than 500 employees recently and said that the decision was taken "in light of the growing market consensus that investment sentiments will remain very cautious throughout this year," according to an Indian Express report.

Ola fires 200 from tech & product team

India-based ride-hailing company Ola fired 200 people from its technology and product team as part of its restructuring exercise. The recent layoffs majorly impacted employees working in Ola Cabs, Ola Electric, and Ola Financial Services verticals.

Last year, Ola shut down its used vehicle business Ola Cars along with store-to-door delivery service Ola Dash. The company seems to be shifting its focus to engineering with a recent announcement saying that it plans to hire 5,000 engineers for its electric vehicle verticals, according to an Indian Express report.

Dunzo failed to make a mark in online grocery market

The latest to join the bandwagon is delivery platform Dunzo, which has announced its decision to fire around 3 percent of its workforce. The Google and Reliance-backed delivery platform has around 3,000 workers and the lay off is estimated to affect around 90 employees.

Dunzo reportedly incurred a net loss of Rs 464 crore in the financial year 2022. This loss was Rs 229 crore in the previous fiscal year 2021. Dunzo was also struggling to be a popular name in the online grocery market, and the platform tried to maintain its hold as it re-strategise and scaled down its daily store operations. None of these measures, however, worked, according to a News18 report.

Amazon sends notice to 2,300 employees globally

According to latest reports, around 2,300 employees of e-commerce giant Amazon have received warning notice under the company's Warn Act on job cuts. Employees from the United States, Canada and Costa Rica are set to let go, according to news agency Reuters.

While the company hasn't clearly mentioned the number of employees to be impacted by layoffs in India, reports suggest that around 1 percent of employees will be affected, which is around 1,000. The company has around 1 lakh employees working from India, according to an India Today report.

ByJu's hit as physical classes resume

With the schools and colleges going back to physical mode of education, online firms like ByJu's have been severely impacted. Byju's announced last month that it would be cutting its workforce of 50,000 by 5 per cent by March this year to lower costs. The company already laid off about 100 employees from its media content division in Kerala.

2021: The year that was

Funding in Indian startups has constantly declined since the start of 2022. According to Inc42 data, Indian startups raised $25 billion in 2022, down 40 percent compared with the watershed moment that was 2021.

After 2021's unprecedented performance, Indian startups have been under pressure, with many of them having high cash burn and low prospects of profitability. The slowdown prompted marquee investors to instruct portfolio startups on how to survive. There was a clear message communicated to startups by all investors: cut costs and increase the runway, the Inc42 report said.