Layoffs in 2022: Around 18,000 employees were let go by cash-strapped startups
- ByStartupStory | December 28, 2022
There have been significant changes to the Indian startup scene this year. Startup companies have been forced to reduce employee bandwidth in order to maintain their company’s profitability due to a decline in venture capital and private equity funding. Nearly 18,000 individuals have lost their employment as a result of start-ups since the year’s commencement, according to an Economic Times study.
Edtech has been one of the hardest-hit industries. 44% of all layoffs were carried out by fifteen enterprises in this sector. To control costs, high-value unicorns like Byju’s, Unacademy, and Vedantu fired staff members.
For instance, in October, Byju’s stated ambitions were to rationalize 5% of the bandwidth used by its 50,000 employees. Unacademy, another unicorn, let off close to 1,100 employees in April. Vedantu, situated in Bengaluru, recently let go of 350 workers.
“Edtech players thought that everything would continue to be digital with Covid-19 getting over. They underestimated the power of the physical. Second, they didn’t really make for great learning experiences. Third, they did not use the money wisely to do a blended product of what was called physical education,” Anshuman Das, the managing partner (MP) at Longhouse Consulting, told The Economic Times.
E-commerce behemoths like Udaan and the online hotel aggregator OYO sacked multiple staff in addition to edtech firms. As part of its corporate restructuring, the Softbank-backed Indian company stated in December that it would be eliminating 600 positions. 350 people were let off by Udaan in November.
Along with layoffs, Indian start-ups saw a series of senior management departures. For instance, the co-founders Satyam Nathani and Bhavik Koladiya left BharatPe, the dominant fintech company with headquarters in Delhi. Abhijit Bose, the CEO of WhatsApp India, Vinay Choletti, the head of WhatsApp Pay India, Ajit Mohan, the head of Meta India, and Rajiv Agarwal, the director of public policy at Meta India, among other senior Meta India officials, resigned from their positions.
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