There is a continuous phase of retrenchment of employees in Indian startup companies. Now a new name has also been added to the country’s largest education startup company Byju’s. The company has fired its 1100 employees in one stroke. This includes temporary as well as permanent employees of the company. Although the company has clarified that it has laid off only 500 employees from its subsidiaries Whitehat Jr and Toppr only, but the laid-off employees have rubbished this claim and said that 1100 from Toppr alone. Employees have been laid off.
Salary not paid for 1 to 1.5 months: According to a report by Moneycontrol, the fired employees include permanent and temporary employees associated with sales, distribution operation, content and design teams. About 300 to 350 temporary employees have been fired from Topper, while 300 other employees have been asked to resign by calling HR, along with it they have also been told that they will be given one to one and a half months by the company. Salary will not be paid.
More than 10 thousand employees have lost jobs: According to a report, a total of 10,029 employees have lost their jobs this year in 27 startup companies of India. Big unicorns like Cars24, Ola, Meesho, MPL, Unacademy and Vedantu are among the startup companies that have laid off employees. A total of 3379 employees were laid off by 9 startup companies in May. At the same time, in June so far 10 companies have fired their employees.
Most of the layoffs have happened in consumer service startups, followed by e-commerce and education startups. If the chutney made by all the startup companies of the three sectors is added, then a total of 8659 employees have been laid off so far.
Reason behind layoffs: The biggest reason behind the retrenchment of employees is the reduction in funding to startups. Indian startups raised a total of $11.7 billion in funding in the first quarter of this year, which has come down to just $3.4 billion in April and to just $1.6 billion in May.