In the past year, funding winter has affected startups’ ability to keep up with their pandemic growth story. Many have retreated to make do with less.A multitude of reasons – the need for larger startups to handle public issues, regulatory and other troubles – have forced companies to layoff people this year as well.
More than half of those layoff in FY24 – 2,620 people – are from Bangalore. Additionally, 16 of the 23 companies on the list of layoffs are from the startup hub of India.
There are many worries for Decacorn
India’s most valuable startup and largest retailer went in for massive layoff this financial year. As the company faces headwinds including screen fatigue among its consumers and financial difficulties that have led it to file a lawsuit against one of its lenders in the US, BYJU’s laid off 1,000 employees in June. As it consolidated operations across many platforms it acquired last year, it had also laid off 2,500 employees in October.
According to reports, India’s largest company, Reliance Industries, and the country’s largest retailer, also layoff 1,000 employees in May, matching BYJU’s number. Metro Cash & Carry, which acquired the retailer, is looking to streamline operations and shut down many of its fulfillment centers, according to reports.
In February of this year, JioMart shut down its Express quick commerce service. Startups that plan to go public also made the list, such as PharmEasy and MamaEarth. Layoffs.FYI data did not indicate how many employees were laid off by Edtech company Frontrow, media startup Bluepad, logistics startup Euler Motors, and fintech company Fampay between April and May.
Bangalore’s hiring dips sharply as well
As well as the slowdown in the economy forcing companies to cut costs, technological disruption is also creating jobs that are no longer needed. According to Foundit Insights Tracker (fIT), hiring in June slowed by 7% compared to the same time last year. Monthly hiring slowed by 4% in June.
As a result of layoffs, Bengaluru also experienced the sharpest decline in hiring. “Bangalore, a major IT hub, experienced a 24% decline in hiring,” said foundit. This fall may be attributed to multiple factors, including the rapid automation that is replacing jobs in various industries, including the IT sector, said foundit.
In metro areas like Delhi/NCR, Mumbai, Pune, and Hyderabad, YoY declines ranged from 9-16%, underscoring the challenges in the job market there.
As the Indian economy strengthens, we anticipate a surge in hiring across industries. “The current hiring trend reflects the challenges facing the Indian job market. Moreover, it is crucial for job seekers to adapt to the changing labour market,” said Sekhar Garisa, CEO of Foundit.