The technology industry has seen a surge in layoffs this week, as major companies cut jobs across various departments. Among the notable companies that have made headlines for layoffs are Amazon, Apple, and Bijouzu, all of which cited strategic shifts and layoffs as the driving force behind their layoffs.
Job cuts will increase sharply in 2024
The technology industry will see a significant increase in layoffs in 2024, according to data compiled by Layoffs.fyi. As of January, 235 companies had laid off 57,785 of his employees. This trend continued in February, with 74 companies cutting 15,379 jobs.
Byju’s restructuring continues
Struggling edtech company Byju’s has announced plans to lay off about 500 employees, nearly 3 percent of its 15,000-strong workforce. The move comes as Byju’s grapples with a reported cash crisis and lower valuation. The company underwent a major restructuring in 2023, resulting in approximately 4,500 employees being laid off.
Indian tech startups witness reduction in layoffs
Despite an overall increase in layoffs within the technology industry, Indian technology startups saw fewer layoffs in the first quarter of the calendar year. More than 2,000 workers were laid off, a 60 percent drop compared to the same period last year, according to data from tracking website layoffs.fyi.
Venture capital cuts impact layoff trends
The decline in layoffs among Indian tech startups has coincided with a decline in venture capital funding. According to the data, in the first quarter of 2023, 43 companies laid off his 5,358 employees, with Byju leading the way with 1,500 layoffs across various teams.
Significant headcount reductions in Q1 2024
Several prominent companies implemented layoffs in the first quarter of 2024. Food tech unicorn Swiggy has laid off 380 employees as part of a company-wide restructuring, while social media platform ShareChat has laid off 500 employees, nearly 20% of its workforce. Other companies such as Ola, MediBuddy, DealShare, MyGate, UpGrad, and Pristyn Care also initiated layoffs, affecting more than 100 employees each.
Funding cycles impact employee dynamics
For many new-age startups, the ebb and flow of hiring and firing is closely tied to funding rounds and the availability of capital in the market. While layoffs decreased in 2021 due to a funding surge, layoffs increased significantly in 2020 due to funding shortfalls.
Outlook for 2024
As funding rounds normalize in 2024, the frequency and magnitude of layoffs are expected to decrease, especially for early-stage companies. Tracxn Technologies’ recent funding data reveals a 28% increase in early-stage rounds in the first quarter, pointing to a positive outlook for the industry going forward. However, seed-stage and late-stage rounds saw declines of 7% and 46%, respectively, compared to the same period last year.
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