Start-Up Layoffs: Indian Companies Cut 10,000 Employees In 2024, Says Report

Start-up Layoffs: In the past six months, venture-funded companies like Swiggy, Ola, Cultfit, Licious, PristynCare, and Byju’s have implemented job cuts as part of cost-cutting measures

Start-up Layoffs: Indian startups have fired approximately 10,000 employees in 2024 as they navigate funding challenges and adopt prudent hiring strategies to enhance their early-stage profitability. In the first half of 2024, there have been fewer layoffs compared to the preceding six months of 2023, during which around 15,000 employees were fired, and the first half of 2023, which recorded 21,000 job losses, according to Longhouse Consulting data.

Despite the recent decrease in layoffs, industry executives and senior HR professionals caution that start-ups are still facing challenges. In the past six months, venture-funded companies like Swiggy, Ola, Cultfit, Licious, PristynCare, and Byju’s have implemented job cuts as part of cost-cutting measures.

Several major consumer internet companies, including Flipkart and Paytm, have also undergone workforce reductions. Earlier this year, it was reported that Flipkart planned to reduce its workforce by 5-7 per cent, affecting between 1,100 to 1,500 employees. 

Swiggy recently laid off approximately 400 employees, while Ola Electric, gearing up for an IPO, is finalising the termination of over 600 employees. This follows the dismissal of about 200 employees by its sister company, Ola Cabs, in late April. Layoffs across these start-ups have ranged from 7 per cent to 15 per cent.

The report highlighted that layoffs in 2024 have been more discreet and incremental compared to the previous year. Anshuman Das, cofounder and CEO of Longhouse Consulting and Careernet, pointed out that approximately 40-50 per cent of this year’s job reductions were termed 'silent layoffs,' where companies refrained from formal announcements and implemented cuts in smaller groups, often attributing them to underperformance. This marks a notable rise from last year's figure of 20 per cent for silent layoffs.

Das also emphasised that this year's layoffs often entailed substituting higher-paid employees with those who receive lower salaries or possess less experience, in contrast to the extensive team reductions seen last year. Companies have adopted a strategy of communicating these layoffs as performance-related decisions, aligning expectations regarding bonuses and salary increments for retained staff and mitigating potential anxiety and discontentment among employees.