MUMBAI: Greater than 100 Indian startups are estimated to have laid off over 24,000 workers in 2023, knowledge shared by market analysis agency TheKredible confirmed. Troubled edtech startup Byju’s, ShareChat, Swiggy and Unacademy are amongst unicorn companies which have fired the very best variety of workers, the info shared with TOI confirmed.
Amid scarce funding and stress from traders to maneuver in the direction of profitability, startups throughout segments slashed jobs in a bid to rein in prices.Funding into startups declined to a seven-year low of $8.2 billion in 2023 in comparison with about $25 billion in investments that companies had managed to pocket from traders in 2022.
Aside from firms trimming their workforce, a clutch of small to mid-sized startups additionally shut retailers final yr, including to the share of laid off workers. Greater than 10 startups shut operations in 2023, the info confirmed. Startups sometimes depend on exterior investments to fund their development and a protracted funding crunch made it troublesome for smaller gamers to maintain operations. In addition to, regulatory challenges and incapability to construct a viable enterprise mannequin additionally added to woes of startups like ZestMoney that halted operations and FrontRow, which shut down final yr. ZestMoney lately acquired acquired by DMI Group in a hearth sale deal.
Few consultants monitoring the house additionally attributed the layoffs to deployment of automation by firms. “The layoffs have been because of deployment of higher automation within the enterprise, correcting the over-hiring performed earlier,” mentioned Aditya Narayan Mishra, managing director and CEO of CIEL HR Providers. Firms have been more and more leaning on expertise to make operations extra environment friendly and save on prices. Synthetic intelligence has been gaining floor.
Amid scarce funding and stress from traders to maneuver in the direction of profitability, startups throughout segments slashed jobs in a bid to rein in prices.Funding into startups declined to a seven-year low of $8.2 billion in 2023 in comparison with about $25 billion in investments that companies had managed to pocket from traders in 2022.
Aside from firms trimming their workforce, a clutch of small to mid-sized startups additionally shut retailers final yr, including to the share of laid off workers. Greater than 10 startups shut operations in 2023, the info confirmed. Startups sometimes depend on exterior investments to fund their development and a protracted funding crunch made it troublesome for smaller gamers to maintain operations. In addition to, regulatory challenges and incapability to construct a viable enterprise mannequin additionally added to woes of startups like ZestMoney that halted operations and FrontRow, which shut down final yr. ZestMoney lately acquired acquired by DMI Group in a hearth sale deal.
Few consultants monitoring the house additionally attributed the layoffs to deployment of automation by firms. “The layoffs have been because of deployment of higher automation within the enterprise, correcting the over-hiring performed earlier,” mentioned Aditya Narayan Mishra, managing director and CEO of CIEL HR Providers. Firms have been more and more leaning on expertise to make operations extra environment friendly and save on prices. Synthetic intelligence has been gaining floor.
