Data from tech-focused hiring firm TopHire indicates that around 100,000 employees have been laid off in India in the past two years, which is much higher than publicly reported numbers.
The Business2Business reports that data released by TopHires highlighted that 91,000 employees have been laid off across India in the past two years.
It is worth noting that according to Layoffs.fyi, a publicly available layoffs data aggregator, around 27,850 employees have been laid off in India since September 1, 2021. This is roughly one-third of what is reported by the tech hiring firm.
The report indicates that this large difference in numbers is due to silent or concealed layoffs and forced resignations.
Data from Layoffs.fyi highlights that of the total layoffs reported in India in the past two years, most jobs were lost in the education or ed-tech sector. The data indicated that 10,679 jobs have been slashed in the sector across leading companies such as BYJU, Unacademy, Vedantu, upGrad, and others.
Edtech company BYJU has laid off most people according to Layoffs.fyi. The company has cut about 5,000 jobs in over four downsizing rounds.
After education and edtech, the retail and e-commerce sector saw the largest number of job cuts in the past two years. More than 3,400 employees lost their jobs in companies like Myntra, Meesho, Mamaearth, Flipkart, Udaan, Dukaan and others.
The food delivery and quick commerce sectors came in third place, with 3,195 job cuts. Zomato, Swiggy, Reliance JioMart, Swiggy, and Dunzo, among others, cut jobs in the sector.
The layoffs are a result of subdued venture funding, which has led many startups to try to cut costs to stay afloat.
According to statistics from GlobalData, between January and May 2023, 459 venture capital deals worth USD 3.4 billion were closed. This is significantly lower than the 851 deals worth USD 13.3 billion closed in the year-ago period.
Due to the cutback in VC funds, companies are forced to execute cost-cutting measures to sustain their business. Layoffs are one means to this end.
But it is worth noting that while a major part of layoffs in India is due to cost-cutting measures, many individuals lost their jobs due to corporate governance lapses and companies being wound down. GoMechanic, Mojocare, Trell, and others are examples of such cases.
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