India’s 100 startups lay off more than 15,000 employees, year full of difficulties

Starting in difficulty: The last week of the year 2023 is underway. This year, IT companies and startups faced things like slowdowns, layoffs and losses. By the end of the year, paytm also had news of layoffs. This year has been heavy for startups. Over 15,000 employees were laid off at around 100 Indian startups. According to statistics from Layoffs.FYI, many companies resorted to layoffs to reduce their costs. Apart from this, artificial intelligence (AI) and automation also affected employees. The problem escalated to such an extent that several startups had to shut down. Let’s take a look at these startups.

Startups are in trouble for these reasons.

Indian startups are seen struggling for funding in 2023. After Covid-19, the condition of these companies started to deteriorate. New people were given jobs to meet the increased demand during the lockdown. These people were stripped of their jobs when demand fell. Lack of funding forced companies to seriously cut costs. Due to the economic slowdown in America and Europe, these startups were also badly affected. IMF and World Bank reports have also expressed the fear of global recession. Which led to mass layoffs. The strict laws of the Government of India also weighed heavily on them.

AI targets Paytm employees

Paytm has cut about 10 percent of its workforce due to its increased use of AI. More than 1000 Paytm employees have been sacked from their jobs. Payments, credit, operations and sales divisions have suffered the most layoffs.

Baiju Ravindran mortgaged his house to split his salary

Baijo laid off 2,500 employees in its second round of furloughs this year. Baiju Ravindran, the founder of Baiju, even mortgaged his house to distribute the salaries of the employees.

There were three rounds of sorting in Mashu.

E-commerce website Meshu has had three layoffs. The company has sent about 15 percent of its employees home. According to an email from the company’s founder and CEO, Vidit Athriya, the affected employees were given an additional month’s salary. another one E-commerce platform Udaan (B2B) laid off 150 employees.

Big layoff in neighborhood tech and danzo

Mohalla Tech Pvt Ltd, which runs ShareChat and Moz, will lay off about 20 percent of its workforce in 2023 and Danzo will lay off 30 percent of its workforce. Both companies are facing cash crunch. About 1,300 employees have been laid off from Mahala Tech. This phase of layoffs may continue into 2024. Grocery delivery platform Danzo About 300 employees have been laid off.

Swiggy’s meat market closed, last day of Zest Money 31st December

Swiggy has laid off 380 employees across its product, engineering and operations departments. Apart from this, the meat market has also been closed. A fintech company ZestMoney recently announced the final shutdown on December 31 after the acquisition talks with PhonePe ended. The startup could not withstand the impact of RBI’s tightening on the BY Now Pay Later scheme and had to close its shutters.

200 people fired from Ola, CoinDCX also took a tough decision

Ola plans to lay off around 200 employees in 2023. The retrenches were employed by Ola Cabs and its subsidiaries Ola Financial Services Pvt Ltd and Ola Electric. there, The founders of crypto exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, announced in a blog post that they were laying off about 12 percent of their employees. Crypto startups are struggling with Indian government regulations. Due to high taxes and TDS, their trade volume has decreased by 90% in one year.

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