Good news for tech employees: Indian startups witness 60% reduction in layoffs

Startups are slashing jobs at a significantly slower pace compared to last year. The first quarter of 2024 saw a 60% drop in layoffs compared to the same period in 2023. This positive trend applies to big names like Byju’s (education), ShareChat (social media), Flipkart (shopping), and Swiggy (food delivery).

The reason? Tighter budgets. With less venture capital funding available, startups are more cautious about staffing. However, over 2,000 employees across 43 companies still lost their jobs in Q1.

Byju’s led the layoffs, letting go of 1,500 employees. ShareChat also downsized, reducing its workforce by 20% (roughly 500 employees). Other companies like Ola (ride-hailing), MediBuddy (healthcare), DealShare (shopping), MyGate (security), UpGrad (education), and Pristyn Care (healthcare) all had smaller layoffs, with around 100 people each losing their jobs.

Even established companies weren’t spared. Flipkart’s annual performance reviews resulted in roughly 1,100 layoffs, and Swiggy downsized by 7% (400 employees) of its total staff. InMobi (marketing), Cure.fit (fitness), and Pristyn Care (healthcare) also underwent layoffs.

Interestingly, this hiring and firing cycle seems linked to funding trends. During the “funding winter” of the previous year, there was a notable increase in layoffs, with a reported 16,400 employees from 111 companies affected. However, in contrast, during the 2021 investment boom, the number of layoffs was significantly lower, with approximately 4,000 individuals affected.

Globally, tech giants like Google, Apple, and Amazon are still restructuring and laying off employees, though at a slower pace. So far this year, over 58,000 employees have been laid off from 237 tech companies worldwide. April alone saw additional job cuts announced by some of these companies.

For example, Apple laid off over 600 employees after shutting down a car project and cancelling a new Apple Watch design, impacting workers in California and Arizona. Microsoft’s restructuring focuses on enhancing AI products and streamlining Teams software, leading to layoffs to boost AI capabilities. Amazon’s AWS division also reduced its workforce, aligning with a company-wide realignment towards physical stores and technology.

However, there’s a silver lining. Despite the layoffs, some companies are supporting affected employees. Apple’s layoffs are part of broader changes, and the exact number might be higher. Microsoft is prioritizing AI development, while Amazon offers support for affected AWS employees to transition to new roles, actively hires in other areas, and provides severance packages, reflecting a commitment to their workforce during restructuring.

The decline in Indian startup layoffs is a positive sign for tech workers. While challenges remain, this slowdown offers hope for a more stable future in the Indian tech industry.