November 30, 2022

Layoff Trends India Why Indian Tech Giants Are Laying Off Employees | What happened all of a sudden that companies started laying people off…recession noise or something?

As unicorn business models and startup companies fear failure, they are already being forced to cut costs and make layoffs.

Indian companies are also laying off.

E-commerce companies were booming in the Covid era. When there was a lockdown, shops were closed E-commerce company He also became the support of the people. And then these companies also earned a lot. Grofers-Blinkit Many new companies have also come up. But nowadays in such companies Round of layoffs It’s ongoing. Rajeev Jaiswal, a young man working in one such company until a week ago, said he was suddenly told that the company no longer needed him. They should talk to HR and make them count.

This is happening to hundreds of young people. Companies were told by mail or verbally that they would have to look elsewhere and were given a standard amount and shipped. This amount is equal to their salary of two or three months. Not one or two, more than 40 companies in India are laying off their workers. Deutsche Welle also claimed this in their report These are all startup companies.

It is not only Indian companies that are doing this. International companies are also constantly laying off. Apple, Meta and Amazon have also suspended new hires for the time being.

Global job crisis

Covid and market volatility

Policy researcher and startup expert Avinash Chandra explains that e-commerce companies were at their peak during the pandemic. Many new companies also came in during that time. Many investors are attracted by the euphoria and profits. But amid the market volatility, soon after the end of the Covid era, companies started facing a crisis. Technology companies in particular have started laying off continuously. Thousands of young people took to the streets in a flash. They say the percentage of people who get a second job is very low. Even 20 percent of those who were fired could not find another job.

Unicorn companies have also closed

Tech companies are known for spending a lot of money, but now these companies are making huge cuts. According to a recent survey by marketing consultant Upcity, more than 15,700 workers have been laid off. Edutech startup company BYJU’S has laid off 2500 of its employees. On the one hand, Edutech company Unacademy has laid off 1000 of its employees, while Blinkit has laid off 1600 of its employees. As DW reports, 44 startup companies in the country have laid off significant numbers of people.

Job crisis

What is the reason for the layoff?

Dr. Chandra said, “Globally, layoffs in companies started in August. Then it seemed that such a time would come in India too. The same thing happened. Amid rising inflation, global companies have started reducing their advertising spend in India. These cost cuts have also been accompanied by layoffs. Everyone has seen the status on Twitter. People also lost their jobs at Facebook/Meta, Microsoft and other companies.

The layoffs in the last two-three months are being called the biggest layoffs in the history of tech companies. Experts say the reasons behind this are economic crisis caused by Covid, Russia-Ukraine war. Experts are expressing fears that bad times are about to begin for IT companies. It can also have a big impact on the Indian market.

As unicorn business models and startup companies fear failure, they are already being forced to cut costs and make layoffs. These organizations are going through a huge pressure.

Experts say that the way these companies have grown during the pandemic, there have been constant hiring and a huge increase in the number of employees. The increase in human resources was expected to increase business and profits, but the results were contrary to expectations. It is expected to take six months for everything to be in place.

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