Layoffs in Startups: The recession in the whole world including India has had a very bad effect on both giants and startup companies. Due to lack of funding in the startup, a decision has to be taken to lay off employees on a large scale. According to a report published in The Economic Times, data from recruitment firm Careernet showed that at least 9,400 employees were laid off between January and March due to lack of startup funding. The list of retrenched startups also includes the names of many unicorn startups in the country.
Which startups were affected by layoffs
Startups that have seen massive layoffs between January and March are online learning platform Byju’s, Unacademy, social media platform Sharechat, apartment platform MyGate and car servicing platform Go Mechanic. (GoMechanic) etc. is also included. According to the report, more than 70 percent of startups have cut their workforce by 100 to 300 people in this quarter. It also includes the names of companies like Dunzo, Ola, Health Tech Startup SaaS.
Up to 80 percent reduction in hiring
Due to paucity of funds, not only has the workforce been cut, but companies have started reducing the hiring of new employees. According to a Careernet report, startup companies have reduced their hiring for senior positions by up to 80 percent compared to last year. The annual salary package for this post is more than Rs 50 lakh. Talking on this report, Anshuman Das, Co-Founder and CEO of Careernet, has said that the situation is likely to remain the same for the next few days. These startup companies will keep the process of hiring slow even further.
Lack of funding is the reason for layoffs
According to many experts, there has been a 71.6 percent decrease in startup funding this year as compared to last year. At this time last year, startups raised a total of $ 12 billion from the market, which has now come down to only $ 2.1 billion this year. At this time, due to the market situation, big investors have stopped investing in startups. In such a situation, startups are facing shortage of money and to reduce their expenses, they are laying off employees and cutting salary hike.
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