New Delhi: As the tech and startup sector grapples with an economic slowdown, over 22,000 workers in the sector have lost their jobs in the Indian startup ecosystem to over 12,000 in 2022. Startups, especially those that have benefited from a pandemic boom. According to Crunchbase, the pressure is felt as valuations, especially in the late phase, have started to decline.
Startups now say that it is more difficult to raise fresh funding in this gloomy environment.
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Globally, companies such as Netflix, financial services company Robinhood and several crypto platforms have reduced their workforce. In the crypto world that is battered by economic headwinds, crypto exchanges and firms including Coinbase, Gemini, Crypto.com, Wold, Bybit. Bitpanda and others announced the reduction of their workforce.
Elon Musk-run Tesla has cut 10 percent of its salaried workforce. Pokémon Go game developer Niantic has asked eight percent of its employees to leave the company, which is said to be around 85-90 people.
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As startups in India lay off their workforce to navigate through a ‘funding winter’, the country could lose over 60,000 jobs in 2022 alone, led by edtech and e-commerce platforms. Around 12,000 startup employees have been shown through the door so far. , Ola, Blinkit, BYJU’s (White Hat Jr, Toppr), Unacademy, Vedantu, Cars24, Mobile Premier League (MPL), Lido Learning, Mfine, Trell, farEye, Furlanco and others.
Industry experts say at least 50,000 more startups are likely to lay off employees this year alone in the name of “restructuring and cost management”, while some startups continue to receive funds worth lakhs. Even many unicorns have laid off employees like Ola, Unacademy. , Vedantu, Cars24 and Mobile Premier League (MPL).