A Bengaluru-based IT startup is reported to have laid off around 40 per cent of its workforce in a single day, including employees on high annual pay packages, sparking intense discussion online about job security and uncertainty in India’s tech sector. The incident first gained widespread attention after a viral LinkedIn post by chartered accountant Arpit Goyal, who revealed that one of his friends at the company earning an estimated CTC of about ₹92 lakh per year was among those laid off without warning.
Goyal’s post struck a chord across social media, not only because of the high salary involved but because it challenged the common belief that premium pay packages offer protection during downturns. His account quickly snowballed into a broader debate about whether India’s startup ecosystem has normalised aggressive hiring during funding booms, only to resort to abrupt mass layoffs when capital tightens. The layoff allegedly affected even long-tenured and high-earning professionals, with no prior warnings or performance-related reasons cited in shared accounts. So far, the startup has not issued any official public statement, leaving employees and the public reliant largely on social-media posts and media reports for
Scale and impact of the layoff
Media reports indicate that roughly two-fifths of the Bengaluru-based IT startup’s workforce were laid off in a single day, with several affected employees claiming the news came with little or no prior warning and minimal formal counselling. According to accounts circulating online, some staff members were informed through brief emails or short virtual meetings, leaving little room for questions or transition planning. In the absence of an official statement from the company detailing the process, much of the understanding around how the layoffs were executed relies on employee narratives and secondary reporting.
Online discussions have highlighted that those affected were not limited to entry-level or junior roles. Employees with annual packages reportedly ranging from about ₹24 lakh to as high as ₹92 lakh were said to be among those laid off. The viral LinkedIn post by chartered accountant Arpit Goyal, which mentioned a friend earning approximately ₹92 lakh CTC being let go, became a focal point of the debate. For many observers, the anecdote symbolised a broader reality — that even high compensation and long tenure may not guarantee protection during cost-cutting drives in volatile funding environments.
Beyond the numbers, several personal accounts added a human dimension to the episode. In one widely circulated story, an employee who was expecting a child within a week was reportedly among those affected, intensifying concerns about the emotional and financial toll of sudden job losses. Commentators noted how such abrupt decisions can disrupt EMIs, housing loans, school fees, and carefully planned savings strategies. The incident has therefore not only triggered discussion about startup financial management but also reignited conversations about the need for clearer communication, humane offboarding practices, and stronger social safety nets within India’s fast-evolving tech sector.
Broader context in India’s tech sector
The Bengaluru case comes at a time when India’s startup ecosystem has been witnessing a sustained wave of layoffs. Industry trackers and media reports have documented thousands of job cuts over recent months, as companies recalibrate after years of aggressive expansion. Much of this correction has been linked to tightening global funding conditions, cautious venture capital flows, and mounting investor pressure to prioritise profitability over rapid scale. After a period marked by record funding and accelerated hiring, many startups are now shifting toward leaner operational models.
Beyond funding constraints, structural shifts within the tech industry are also influencing workforce decisions. A post-pandemic hiring correction has left some firms overstaffed relative to current revenue growth, prompting cost rationalisation measures. At the same time, the increasing adoption of AI-driven tools and automation technologies has begun reshaping organisational needs, particularly in mid-level or process-heavy roles. While automation is not the sole cause of layoffs, it has contributed to a broader restructuring trend aimed at improving efficiency and reducing burn rates.
Within this wider context, the Bengaluru startup’s reported 40 per cent workforce reduction stands out for both its scale and the speed with which it was executed. However, analysts suggest it mirrors a familiar pattern in high-growth ecosystems: rapid hiring during flush funding cycles followed by abrupt downsizing when market realities shift. Arpit Goyal’s viral post, highlighting the layoff of a ₹92 lakh CTC employee, amplified this discussion nationally. It did more than spotlight a single case — it reignited debate around sustainability, transparency, and what “job security” truly means in India’s evolving tech landscape.
The Logical Indian perspective
At The Logical Indian, we see this incident as a warning that high salaries and fast‑growing startups do not guarantee job security or dignity. Companies must balance cost‑cutting with transparency, fair severance, and support for those they let go, while policymakers and investors should push for stronger social‑security safeguards and clearer norms around large‑scale layoffs. When the next wave of cuts hits, will India’s tech sector protect both profits and people—or repeat the same cycle of shock, anger, and insecurity?
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One of my friend working in IT startup at bangalore,
— CA Arpit Goyal (@Arpit1223) February 24, 2026
Recently his company did a 40% layoff in literally a single day and this is a real story.
And he is having a CTC of 92 lakhs.
The job loss is real.
