Job seekers have a hard time finding a job in this world that’s driven by survival of the fittest and have replacements for every employee.
Startups often make lucrative offers that a job seeker finds difficult to say no to, but after what has happened recently in the market, startups are surely a scary place to be in.
That is because some of the popular start-ups in India, including Unacademy, Cars24, Vedanta, Meesho, Trell, Furlenco and many others let go of over 5,000 employees in India.
And the worst bit is that this is not the end, the firings will continue across the startup industry in India. Most employees who were laid off by the companies claimed that they were asked to leave without any prior notice.
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The reason behind the mass firings is unknown, but one reason that is common in all companies laying off employees is cost-cutting. That is also because the funding has slowed down and the startups are unable to handle the investor pressure.
How did the start-up story turn sour?
A series of global macro events, including stock market crashes, rising inflation, interest rate hikes, and the Ukraine war have significantly eroded the value and volume of VC deals.
Both domestic and global funds have been facing delays in raising money, with their investors reassessing financing commitments over concerns of high valuations and lack of profitability, and increasingly demanding more investment discipline.
Talking about exact figures, Ola has laid off close to 2100 employees in the first quarter of 2022, followed by Unacademy with 926 layoffs.
Vedantu has laid off more than 600 employees whereas Cars24 has laid off around 600 employees.
The newly founded Meesho, which was supposedly doing good in terms of revenue, has let go of around 150 employees in just a couple of years after its inception.
Image Credits: Google Images
Sources: Business Today, India Today, Economic Times
Find the blogger: @Drishti Shroff
This post is tagged under: Ola, Labourers, India Startups, Vedantu, Unacademy, Cars24, Meesho, Lay-Off, Cost-cutting, Investors, Domestic, Mutual Funds, Global Macro Events, Stock Market Crashes, Rising Inflation, Interest Rate Hikes, Ukraine War, Business Startup, Economic Crisis, Economic Recession
Disclaimer: We do not hold any right, copyright over any of the images used, these have been taken from Google. In case of credits or removal, the owner may kindly mail us.
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