From Byju’s, Ola, Netflix to Tesla and Unacademy, many companies have been laying off staff in recent months, with some even doing so more than once.
Amid the funding drying up globally across the start-up ecosystem, many startups had to cut down on costs, with layoffs being one of the ways to do so.
As per data compiled by layoffs.fyi, a tracker that compiles public information about layoffs in start-ups across the world, 43,399 start-up employees have been laid off across the world since April 1st 2022. Out of these, over 13% were fired by Indian start-ups.
The data is for the period between April 1 and July 12, 2022, which mentions that 5,670 people had to lose their jobs amongst Indian startups. Whereas in the entire past financial year 2021-22, the number of start-up employees laid off in India were 1,440.
Globally, 342 companies laid off their employees since April 1 and 43,399 people were shown the door. In the US alone, 21,329 start-up employees were let go off, as per the data reported in The Hindu Business Line.
Most start-up layoffs in this financial year in India occurred in June 2022, with 17 out of 26 layoff events taking place last month. Data mentioned that at least 2,261 people lost their start-up jobs in this period. In May 2022, 7 layoff events occurred in India across six companies, wherein 2,109 people lost their jobs. In April 2022, two start-ups cumulatively fired 1,150 people, the data stated.
Most Firings In Edtech
With big players like Unacademy, Byju’s and Vedantu laying off a large number of people in the recent months, the Edtech sector has seen the greatest number of firings in the first quarter of the fiscal year 2022-23 yet. The data tracker states that Unacademy fired 1,150 people in two phases, Vedantu fired 624 and BYJU’S -owned Toppr and Whitehat Jr fired around 350 and 300 people each, the report stated.
On the other hand, healthcare start-up sector saw the second most number of people losing jobs. 940 people were laid off in the first quarter of FY23, with Bengaluru-based MFine alone firing 600 people. Pre-owned cars e-commerce platform Cars24 too fired 600 people in May 2022.