Global tech layoffs which have left lakhs of professionals jobless and left the remaining workforce anxious, has been led by big tech firms in the US. As recession strikes, the lack of demand from US firms is also expected to build pressure on Indian IT firms, which have resisted the layoff wave so far.
But the Indian startup ecosystem has already been hit hard by job loss, with 82 firms firing 23,000 tech professionals in the country so far.
Cold shoulder from VCs
Once a hope for young tech talent in the country to rise as entrepreneurs, startups are caught in a funding winter, with financing down 70 per cent in January 2023.
Led by Byju's, which fired almost 1,500 people after reporting a 20-fold surge in losses, Indian edtech startups have laid off almost 8,500 techies so far.
Cab aggregator Ola, hotel booking app Oyo, and e-tailer Meesho have also slashed their workforces, and more startups joined the layoff wave from January.
GoMechanic, a startup backed by Sequoia, had also fired 70 per cent of its staff, just before it was caught inflating revenues.
Going in a different direction from IT sector
Although startups in India joined the global layoffs due to a funding freeze, IT firms have resumed hiring.
Analysts are expecting more work for techies in Indian IT firms, as US-based companies will look for low-cost services to cut costs.
Indian startups which had accounts with the Silicon Valley Bank were also expected to slash workforce in order to save costs.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
