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In a recent report, it was stated that layoffs by Indian startups have surpassed the 30,000 mark since the beginning of 2022, following Byju's announcement of a restructuring exercise this week that will affect over 4,000 employees.
So what is going wrong with Indian Startups?
The scale of layoffs
Since 2022, approximately 95 startups have laid off nearly 31,965 employees, according to Moneycontrol's layoff tracker, as they aim to reduce expenses and prioritise profitability.
However, in 2023 alone, approximately 49 startups have laid off nearly 13,000 employees. It's worth noting that the actual number of layoffs could be higher, as many startups have been resorting to silent layoffs.
Why so many layoffs?
Currently, the majority of the Indian startups are going through a very tough phase.
They are facing so many challenges like Funding Winter, trying to turn their loss-making business into profitable, gaining real competition from other startups, and increasing costs in their operations.
Byju’s leading the trend
Byju's is a major player in the EdTech Sector and currently facing a lot of heat from its employees and investors.
As part of its restructuring & cost-cutting efforts, Byjus laid off around 10,000 employees from its workforce from the start of 2022, and this number is likely to continue to rise.
What does the future hold?
Startups in India are likely to face a bleak future in the next 3-5 years as more startup funding gets cut. As an example, startups received funding of $523 million in July 2023 but the number came down to $376 million in August 2023, which forced them to cut their workforce
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