Numerous tech giants and startup companies have laid off hundreds and thousands of workers in 2023. The reasons cited for layoff vary from company to company. In 2023, the majority of companies have opted for AI automation.
Thus, to cut costs, they cut their workforce. As per the latest reports, the total number of employees who lost their jobs from renowned tech companies and startups in India is 16,398 employees. This is a huge number amid the layoffs occurring worldwide.
As per the reports, in 2023 big companies like JioMart, Swiggy, Paytm, and BYJU have joined the wave of global layoffs by contributing to a majority of the percentage of labor turnover in 2023. Paytm, the Fintech major cut its workforce as it adopted Artificial Intelligence and automation.
Meanwhile, BYJU, the Edtech major has its own set of reasons to contribute to the labour turnover. Apart from these big companies, several Indian tech startups contributed to the labor turnover due to the adoption of AI, Automation, and other reasons.
Layoffs at Indian Tech Companies and Startups in 2023
In 2023, the majority of employees were cut down from certain prime locations across India including Chennai, Bengaluru, Pune, Delhi NCR, Hyderabad, Mumbai, and more. Financial Express reported that the following major tech giants of India contributed to the labor turnover in thousands with BYJU laying off 2,500 employees, Paytm with JioMart cutting down 1,000 employees, with Swiggy laying off 380 employees. Besides these top companies, other small-growing companies, and startups also contributed to the labor turnover.
WayCool-300 employees, Dunzo-300 employees, MPL-350 employees, Meesho-251 employees, Adda247-300 employees, Skill Lync-600 employees, 1K Kirana-600 employees, Milkbasket-400 employees, Ola-200 employees, Spinny-300 employees, Pristine-300 employees, and ShareChat-700 employees.
Financial Express’s report suggested that there was a decline in 72% of funding in 2023 in the Indian tech startup ecosystem. The decline in funding until December 5, 2023, was $25 billion in 2022 as compared to $7 billion in 2023.
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The report also states that the funding reported is the lowest ever in the last five years. Since the third quarter of 2016, the funding recorded is the lowest. Moreover, as per the report, India’s job market will soon witness a rise in demand on the global market amid ongoing economic crises and challenges.