June 2022 \ Business & Investment \ BUSINESS NEWS—STARTUPS
Layoffs despite startups being flush with funds

After funding galore that saw more than $42 billion flowing in the Indian startup ecosystem last year alone, the current layoff season has shaken up the country’s workforce, especially the young, who quit traditional, stable companies to join startups at crazy packages

By Nishant Arora

NEW DELHI: After funding galore that saw more than $42 billion flowing in the Indian startup ecosystem last year alone, the current layoff season has shaken up the country’s workforce, especially the young, who quit traditional, stable companies to join startups at crazy packages. The blockbuster startup party, that started in the pandemic years, appears to be over as thousands have been fired from startups ranging from edtech to e-commerce and healthtech verticals.

The professional networking platforms like LinkedIn are full with raging posts from employees who have been asked to leave. The situation is set to get worse with recession looming and funding drying up. From early-stage startups to “soonicorns” (set to become unicorns with a valuation of $1 billion and above) and the unicorns—all are bracing for a harsh winter ahead.

In total, over 6,000 people have been shown the door in the name of “restructuring” and “cost cut” as startups and unicorns shut non-performing verticals, cut marketing spend, and freezing fresh hiring. Edtech major BYJU’s-run WhiteHat Jr forced more than 1,000 employees to resign after they were either asked to join at different locations or return to Mumbai or Gurugram. Sources close to the company had told IANS that WhiteHat Jr asked its nearly 3,000 sales and support employees to report to either Mumbai or Gurugram (out of its 5,000-strong workforce that includes teachers which are on contractual basis, and hence not full-time employees) in April, leading to mass resignations.




Tags: Zomato, Startups, BYJU

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