Indian tech startups have reportedly shown a slowdown in employee layoffs this year, providing a sigh of relief for the industry. According to a recent report, more than 2,000 workers were laid off in the first quarter of 2024, a significant decrease compared to the same period in 2023.
The tracking website, layoffs.fyi, reported a 60 percent decrease in layoffs compared to the same period last year. This trend aligns with the reduced availability of venture capital funding. The data reveals that 43 companies conducted layoffs in the first quarter, impacting a total of 5,358 workers. Edtech giant Byju’s saw the most significant job cuts, laying off 1,500 employees across various departments.
Several other startups also implemented workforce reductions. Social media platform ShareChat downsized its team by 20 percent, letting go of approximately 500 employees. Companies like Ola, MediBuddy, DealShare, MyGate, UpGrad and Pristyn Care also witnessed layoffs, firing 100 employees each.
However, the layoffs were not confined to startups. E-commerce leader Flipkart conducted its annual performance reviews, leading to roughly 1,100 job cuts. Similarly, Swiggy downsized its workforce by 400 employees in January, representing 7 percent of its total staff. Other notable companies like InMobi, Cure.fit and Pristyn Care also underwent layoffs.
The cyclical nature of hiring and layoffs in startups is directly linked to funding trends. The previous year, coinciding with a “funding winter,” witnessed a significant number of layoffs – approximately 16,400 employees from 111 companies. Conversely, during the investment boom of 2021, layoffs were considerably lower at around 4,000.
On the global front, layoff trends are also slowing down, but not entirely. Tech giants like Google, Apple and Amazon continue to make job cuts following restructuring exercises. So far, a total of 237 tech companies have laid off 58,499 employees in 2024. In April alone, many companies announced fresh job cuts.
In April 2024, Apple, Microsoft and Amazon all announced significant job cuts. Apple laid off over 600 employees after shutting down its car project and cancelling the Apple Watch Ultra with MicroLED display. Microsoft’s restructuring, led by Jared Spataro, is focusing on enhancing Copilot AI products and streamlining Teams, resulting in layoffs to boost AI capabilities. Amazon’s AWS division also reduced its workforce, aligning with a company-wide realignment towards key areas such as physical stores and technology.
Despite these layoffs, the companies are taking measures to support their employees. Apple’s layoffs were part of broader operational changes and the exact number may be higher than reported. Microsoft is prioritising AI development, while Amazon is offering support for affected AWS employees to transition to new roles, actively hiring in other business areas and providing severance packages, reflecting a commitment to their workforce during restructuring.
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