Layoffs at startups continue in 2023 amid funding winter!

1
131
startups
startups

Layoffs Indian startups sustained to lay off employees in 2023, with at slightest 11 tech startups firing 1,400 employees in the primary two weeks of the year. This accounts for 7.3% of the total layoffs by startups in 2022 as corporations seek to cut costs amid economic uncertainty.

“Founders are intensely aware of the slowdown in the dealmaking pace, and ‘extend the runway’ is the mantra they are obeying to tide over the next quarters. So, startups are going back to the drawing sheet to implement measures which will help them survive for the next 24 months,” said Bhargavi V., cofounder, and husband at Java Capital.

Amid companies having concluded layoffs in 2023, Google-backed Mohalla Tech Pvt Ltd, which runs the community media site ShareChat and short video platform Moj, topped the list with about 600 layoffs. It said external macro factors impacted costs and availability of capital. The Bengaluru-based company neat its headcount by around 20% in the latest round. Mohalla Tech had also shut its imaginary sports vertical Jeet11, which had approximately 115 employees in December.

Layoffs at startups continue in 2023

Another Google-backed startup that enthusiastic its employees in early 2023 are Dunzo. Quick commerce fixed sacked 3% or nearly 90 employees as part of its restructuring. Employees from the creation and supply chain were impacted. “Some senior developers and at least two directors of the business have been sacked,” a person aware of the development at Dunzo said, in search of anonymity.

edtech unicorn Lead School sacked nearly 60 employees initially this month after firing 100 employees in August, whereas UpGrad-owned Harappa Education sacked 70 employees or 35% of its 200-strong workforce. More redundancies are likely at the company, the human resources division had told parting employees.

Read More: Google-backed Dunzo fires 3% of workforce! Here’s all secrets.

1 COMMENT