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Layoffs at startups reducing or more to come? ‘Companies have already decided…’
Layoffs in 2024: Hiring is still down by 35-40% from the 2021-22 highs, data showed. In 2023, startups hired 60-70% fewer employees.
Startups in India fired less employees in the first half of 2024 compared with the previous six months and a year earlier, as per data from executive search firm Longhouse Consulting. During the January-June period this year startups cut nearly 11,250 jobs during the January-June period this yea in contrast with 21,000 in the first half of 2023 and 15,000 in the second, it showed.
Even though layoffs have reduced in comparison to 2023, they are not over yet as startups continue to face challenges like funding, need for cost conservation and some are preparing for their IPOs. Anshuman Das, chief executive of Longhouse told Economic Times, “The intensity has reduced; the bottom is behind us but it’s not like good days are immediately ahead."
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What about hiring? Has it increased or decreased and by how much?
Hiring is still down by 35-40% from the 2021-22 highs, data showed. Although from last year it has improved as at that time startups hired 60-70% fewer employees compared with the previous year. But this is better than 2023, Anshuman Das told ET, when startups were in ‘Operation Clean-up’ phase. In 2023 over 36,000 people lost their jobs compared to 20,000 in 2022 and 4,000-plus in 2021.
This year major layoffs happened in companies like Ola Electric, Paytm parent One97 Communications, Byju’s, Unacademy, Swiggy, Flipkart, Waycool, Healthify and The Good Glamm Group.
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ET cited a CEO of an edtech startup as saying, “There may be some pockets where some layoffs are still happening or will happen but most of the calls that were supposed to be taken have already been taken. Most companies have now tightened their screws enough already. IPOs are one place where most are trying to get the costs right; there may be some bigger issues with large companies like Byju’s or wherever more M&As may be happening."
