In recent times, the word "layoffs" has been striking fear in the corporate world. With looming economic recession news, many companies are ruthlessly letting go of their employees. Giants like Google, Amazon, and Facebook have also laid off a significant number of employees. This has created an atmosphere of fear where everyone is worried about losing their job anytime.
If this is the situation for giant companies, there's no need to elaborate on the state of smaller startups. Even startup companies are laying off employees. In the face of economic recession, startups are cutting costs by letting go of their workforce. Statistics show that in the first six months of this year alone, startups have laid off around 10,000 employees. However, the good news is that this is less compared to last year.
According to a report by Long House Consulting, from January to June 2023, a whopping 21,000 employees were laid off. Senior HR professionals and industry executives revealed that companies like Swiggy, Ola, Cult Fit, Licious, Pristyn Care, and Byju's have sent employees home as part of their cost-saving measures. It is predicted that the layoff process may continue for a few more days. Estimates suggest that another 5,000 employees might be laid off in the next six months. Notably, only 15-20% of the laid-off jobs are being refilled by the startup companies.
Additionally, the fact that companies like Flipkart and Paytm are also laying off employees is causing concern. Earlier this year, Flipkart laid off around 1,500 employees. Swiggy also laid off 400 employees. Ola handed out pink slips to 600 employees. Whether this trend of job cuts will end this year or continue into the next year remains to be seen.
