Brawl of survival: How laid-off startup employees are coping
- ByStartupStory | July 4, 2022
Moneycontrol spoke to 15 people who were laid off in the past six months to understand their hopes and fears as they navigate towards the new normal. Companies were cutting down the workforce as some roles have become unnecessary. People had to go through extreme humiliation. They had a lot of responsibilities on them and almost everything they had was taken away in a few minutes. Thousands of young professionals who were laid off over online meetings in minutes without any prior notice. Almost all were caught unawares, forcing them to dip into their savings or lean on to other family members for the financial support.
Slowing demand, coupled with a drop in funding from PE and VC firms, has had a domino effect on India’s thriving edtech companies including Byju’s, Unacademy and Vedantu, forcing them to fire as many as 6,400 employees, close to half of the total layoffs. Candidates who were offered lakhs of rupees as monthly salaries now have to settle for much less due to such unfortunate circumstances. Many employees who suddenly lost their jobs are struggling to pay household bills and are trying to provide for their families. Laid-off employees are being offered roles that don’t suit their experience level and skills or their location preferences. Employees are losing jobs and salaries are plunging as inflation accelerates across the globe thanks to supply-chain constraints due to the war in Europe and intermittent Covid-19 restrictions in countries such as China.
Rising prices are only adding to the unpleasant situation of those who have lost jobs. While a few are struggling with day-to-day expenses, some have cut down on additional spending as disposable income declines. The sudden downsizing in startups has affected not just these employees but also their families, especially in India, where there is still a stigma around being laid off.
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