As the fear of recession has started to aggravate the layoff rates, more than 23,000 employees have been compromised by at least 82 startups in India. As per a report in Inc42, 19 ed-tech startups, including four unicorns have laid off a concerning number of 8,460 employees till date.This consistent trend of layoffs since the last year is surprisingly being led by companies who were earlier considered to be the biggest mass recruiters in the private sector. Some of these companies are BYJU'S, Ola, OYO, Meesho, MPL, LivSpace, Innovaccer, Udaan, Unacademy and Vedantu, as per a report in Business Insider.
It is observed that sudden strike on number of employees is happening the in Education, Design and Lifestyle sectors with dominance in the corporate world. Home interiors and renovation platform ‘Livspace’ laid off at least 100 employees as part of cost-cutting measures. ‘SaaS’ platform for online stores 'Dukaan, laid off nearly 30 per cent of its workforce, or around 60 employees, and both of the actions were taken in the span of last two weeks.
Online higher education facility, ‘upGrad’ laid off nearly 30 per cent of its workforce at its subsidiary ‘Campus’
Layoff Crisis & Market Conditions
The list continues with social media company ‘ShareChat’ (Mohalla Tech Pvt Ltd) laying off 20 per cent of its workforce due to uncertain market conditions. The list continues with social media company ‘ShareChat’ (Mohalla Tech Pvt Ltd) laying off 20 percent of its workforce due to uncertain market conditions. Global delivery management platform named ‘FarEye’ laid off 90 employees. This was its second layoffs in about eight months during the economic meltdown.
Since the onset of this year, the rate of layoffs by Indian startups have increased to jarring height, which poses threat to the livelihood of many resident Indians who possess eligibility, qualification and skills, but unfortunately consistently decreasing space to fit in.
Hiked competition amongst the many successful Indian-origin companies combined with the anticipated recession in the Indian economic scenario could be blamed as the cause of the problem; a vigilant check on the recruitment patterns and job security provided by the companies to their employees is necessary at this point.
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