The Indian IT sector with giants such as TCS, Wipro and Infosys have stayed resilient even as tech firms globally have been forced to lay off lakhs of professionals. But Indian startups haven't been able to withstand headwinds, and about 80 firms have fired more than 23,000 people to stay afloat.
Although a funding freeze is one of the factors blamed, delivery startup Dunzo has slashed its workforce by 30 per cent, despite a $75 million financing round.
Second layoff within months
The layoff which comes after fresh funds, is 10 times higher than a 3 per cent reduction in staff by Dunzo in January to cut costs.
Back then the Google-backed firm's CEO had called the decision to sack people painful and promised support for employees left jobless.
As it makes a shift towards supermarkets and merchants, Dunzo will also close down 50 warehouses.
Cutting staff costs while spending more on ads
With renewed financing, the quick commerce platform is zooming towards strengthening its micro-warehouse network and logistics service in the B2B space.
The layoffs have followed a two-fold rise in Dunzo's losses between FY21 and FY22.
Although it used layoffs for cost-cutting, advertising accounted for a bulk of the startup's expenses, which clocked an 11-fold rise.
Google, which itself laid off 12,000 people, has a 20 per cent stake in Dunzo, while 25.8 per cent of it is owned by Mukesh Ambani's Reliance Retail.
