The Indian Express | 1 week ago | 18-01-2023 | 05:35 am
Tech layoffs continued into the new year, with at least 101 companies laying off 25,436 employees globally in the first few weeks of January, according to layoff.fyi, a site that tracks job cuts. Going by data shared by the platform, more than 1,600 tech employees are being let go per day on average in India and globally this year.Indian startups figure prominently among the firms which are laying off employees.Around 1,024 tech companies globally, including both big tech firms and startups, laid off 154,336 employees in 2022, making it the worst year in a decade for tech roles. Last year’s layoff wave exceeded all previous records, with retail, consumer, transportation, and finance-related tech companies firing most of the affected employees.November 2022 witnessed the highest number of tech layoffs, which impacted close to 51,800 employees across 2,017 companies in India and globally. The last time the number breached these levels was at the height of the Covid-19 pandemic in Q2 CY2020, when 428 tech companies fired at least 60,000 employees. After that, layoffs had tapered to a minimal level, but have picked up pace alarmingly since Q1 2022 without any signs of a slowdown, according to layoff.fyi data.In January, Indian startups, including Dunzo, Sharechat, Rebel Foods, Captain Fresh, BharatAgri, Ola, DeHaat, Skit.ai, Coin DCX, LEAD School, Bounce, Cashfree have laid off several hundred employees.On Monday, ShareChat and Dunzo laid off 250 and 100 employees, respectively, at a time when consumer internet companies are struggling with a funding slowdown and the ongoing economic downturn.Cab aggregator and electric two-wheeler manufacturer Ola also sacked at least 200 employees across all verticals last week. The SoftBank-backed mobility company had earlier fired over 1,000 employees last year.LEAD, an edtech unicorn laid off some 60 people from its product and tech teams in its second cost-reduction exercise within a span of about six months, making it the newest edtech unicorn to choose retrenchment to keep costs in check.E-commerce major Amazon has laid off around 1,000 staff in India as part of its global retrenchment drive. Globally, the company had announced that it would cut around 18,000 roles citing uncertain economic conditions.FE had reported in December that the rising number of layoffs among startups and digital platforms is expected to slow down by mid-2023. Hiring experts said that by the middle of 2023, companies in the digital space may go back to hiring to fuel their growth plans.Sekhar Garisa, CEO, FoundIt (formerly Monster India), said startups in India still have a very large workforce with high attrition of 25-30%. This means even as they cut back on jobs, many will continue to hire. Garisa said around 500,000 job listings currently live on hiring platforms are in fact from tech startups. However, perks and salary expectations have levelled off compared with the pre-Covid era.Yet, the tech industry, including Big Tech and startups, together has laid off over 17,000 employees in India in 2022. Many of these include unicorns, late-stage firms and even early-stage startups that were unable to raise crucial cash amid the funding crunch. The consumer internet segment currently remains the most affected in terms of job cuts. Startups in edtech, fintech, hyperlocal delivery, insurtech, content and gaming, logistics and online commerce are some of the worst affected. According to some estimates, edtech was the worst affected, with 14 edtech startups laying off 6,898 employees in 2022.Salman SH/FE
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