Laid off
FeaturedHighlights
0

A list of 40 startups that laid off their employees

The Indian startup job market is in crisis, with a steady fall in financing causing major disruption. Since the fundraising winter of 2022, an estimated 20,000 employees have lost their jobs in 70 to 100 Indian businesses.

The edtech sector has been hit the worst, with the most layoffs, followed by consumer services and ecommerce. People Matters created a list of firms that had to lay off staff as the startup ecosystem navigated this hard fundraising winter and ensuing downturn.

1.Airlift
The news that Pakistan’s most valuable startup, Airlift, was closing down sent shockwaves across the country’s startup community in July 2022. In 2021, the rapid delivery startup received a whopping $85 million investment round, making it the greatest funding achievement for any Pakistani company at the moment.

However, investors withdrew their backing a year later, resulting in the terrible conclusion. Hundreds of corporate employees, as well as thousands of warehouse workers and delivery drivers, were laid off as a result.

2.Blinkit
Blinkit, a quick commerce firm, laid off employees in places like as Mumbai, Hyderabad, and Kolkata. These layoffs affected around 5% of Blinkit’s overall employment, or approximately 1,600 people, including riders, pickers, and store managers.

The layoffs occurred shortly after Zomato’s investment of $150 million in the financially struggling company, which had also obtained a $10 million loan from Innoven Capital.

3.Byju’s
Byju’s continued to lay off employees as part of their cost-cutting strategies. The edtech firm recently had to lay off around 1,000 staff. Byju’s had previously gone through two rounds of layoffs in the previous year, resulting in over 3,000 job losses.

According to three people acquainted with the matter, the recent round of layoffs was the fourth in the last year, with 12,000 to 13,000 Byju employees losing their jobs. According to one of the individuals, the layoffs had a substantial impact on middle and senior staff at various levels inside the organization.

4.CarDekho

CarDekho decided to prioritize profitability, which resulted in layoffs at the junior and mid-senior levels of the used-car industry. This material was provided to BusinessLine by three anonymous sources. Though the exact number of employees affected by the job losses at CarDekho could not be confirmed, the majority of the layoffs affected roles such as retail associates and inspection engineers.

5.Car24

Cars24 responded to poor performance by firing 600 employees. The layoffs were implemented as a cost-cutting move, and the corporation clarified that the individuals affected were let go owing to poor performance.

During that time, Cars24 also saw high-profile departures, with Jitendra Agrawal, Global Chief Technology Officer, and Kingshuk Sanyal, Business Head, stepping down to explore other opportunities.

6.Cazoo

Cazoo, a London-based used automobile marketplace, announced a big withdrawal from the European Union, confining its operations to the United Kingdom. As a result of this decision, the corporation confirmed the layoff of 750 employees.

This round of layoffs follows another 750 job cuts announced in June, for a total of 1,500 individuals leaving the company in 2022, accounting for 30% of its workforce. Sifted was informed that the recent layoffs were in addition to the previous wave of job losses.

7.Chipper Cash

Platform for cross-border payments in Africa Chipper Cash laid off a second round of employees in February, just 10 weeks after the first round, which affected around 12.5% of the workforce. The technical team was particularly hard hit during the second round of layoffs.

8.ClickUp

ClickUp, a project management platform, laid off 7% of its workforce, or around 60 individuals out of approximately 860. This decision was made shortly after the tech business relocated into its new downtown San Diego offices in October.

Surprisingly, ClickUp’s valuation has risen to $4 billion following a $400 million Series C fundraising round. ClickUp, founded in 2016 by CEO Zeb Evans and Alex Yurkowski, had enjoyed rapid development. However, the layoffs were part of a larger trend, with Europe-based software startups Klarna and Gorillas also recently announcing job cuts.

9.Culture Amp 

Culture Amp, a Melbourne-based software corporation, saw roughly 90 people quit the company, following in the footsteps of other digital companies like as Atlassian and Mr Yum, which had previously undergone employment layoffs. The layoffs accounted for around 9% of Culture Amp’s overall staff, or approximately 1,000 individuals.

10.Cerebral 

Cerebral, a telehealth firm, reported a 15% reduction in its employees on Monday. This decision followed a year of increased scrutiny and government inquiries into the company’s prescribing practices.

Earlier in the day, Business Insider reported that the company, which provided mental health services through its telehealth platform, will lay off 285 workers in its third wave of layoffs in a year.

11.Cogito 

Cogito, an automation firm with offices in New York and Delhi NCR, laid off 177 people after the project they were working on was canceled. This decision sparked protests from affected employees, who claimed they were not paid prior to being let off.

According to Cogito’s Chief Technology Officer (CTO), Rohit Agrawal, the layoffs occurred when one of their clients decided to unexpectedly scale down their activities owing to market conditions. As a result, the 177 people who were working on the project were laid off.

12.Chingari

As part of its organizational restructure, Chingari, an Indian startup, terminated jobs. Approximately 20% of the company’s employees was affected by the layoffs. The company’s representative told the news agency IANS that the layoffs were one of the most difficult decisions for management to make, given the tremendous impact they had on their staff.

13.Dunzo 

During an all-hands meeting on the evening of July 19, quick-commerce player Dunzo revealed plans for another round of layoffs. Mukund Jha, the company’s co-founder and CTO, warned staff that the size of the layoffs would be determined within a week. This will be Dunzo’s third round of layoffs in the previous seven months, indicating the difficult circumstances the company was in due to mounting financial concerns.

14.Dukaan 

Dukaan, a DIY platform that allows merchants to build their own e-commerce sites without programming knowledge, announced massive layoffs. Following the introduction of an AI chatbot to handle customer support enquiries, the company decided to lay off 90% of their support workers.

Suumit Shah, the creator and CEO of Dukaan, released this update via Twitter, emphasizing the AI chatbot’s good influence. He explained that the use of Dukaan’s proprietary AI assistant reduced query response time from an average of 2 hours and 13 minutes to just 3 minutes and 12 seconds.

15.Doubtnut

Doubtnut, an edtech platform, reportedly reduced its employees last year while evaluating potential purchase prospects. Tanushree Nagori, co-founder, stated that the workforce was rationalized six months ago and denied any speculations of a purchase.

The Gurugram-based business encountered difficulties in obtaining new capital, pushing them to consider takeover possibilities with a variety of organizations. According to an Entrackr assessment, Doubtnut decreased its employment by 30-40%. According to the same research, high burn rates and minimal revenue discouraged potential acquirers, resulting in a lack of interest in the edtech platform.

16.Dapper Labs

Dapper Labs, a technology business and inventor of Nonfungible tokens (NFTs), announced its third wave of layoffs in less than a year. On July 13, Dapper Labs’ CEO, Roham Gharegozlou, announced the departure of “51 brilliant colleagues and friends.” According to a memo delivered to employees, the most recent round of layoffs affected both full-time employees and C1 contractors.

17.Drip Capital

According to Inc42 sources, trade financing company Drip Capital underwent a reorganization exercise in November of last year, resulting in the layoff of around 20% of its 400-member workforce. The layoffs mostly impacted the technology, engineering, and sales departments.

According to the sources, the startup did not disclose a clear cause for the layoffs. Drip Capital declined to respond when Inc42 sought a reaction from the company on the incident. CEO Pushkar Mukewar reportedly announced the corporate reorganization plan during a town hall meeting with all employees in mid-November last year.

18.Euler Motors

Euler Motors, a maker of electric vehicles, has cut off 10% of its workforce across divisions, citing reorganization. While the company’s LinkedIn page lists roughly 500 employees, bringing the total number of impacted employees to 50, an Inc42 source indicated the figure was closer to 180 to 200.

“We are restructuring our company to better deliver to customers as well as investor expectations of greater efficiency in the context of changing global circumstances,” a company spokeswoman said in a statement released on Monday (April 10).

19.Extramarks

According to sources told by Inc42, edtech platform Extramarks completed a restructuring exercise that resulted in over 300 employee layoffs. The corporation opted to close its B2C (business-to-consumer) vertical, which resulted in the majority of employment cutbacks in this sector.

The cuts, however, affected personnel from the sales, customer service, HR, marketing, technology, and content teams. Despite the fact that it will no longer accept new students for its B2C vertical, Extramarks will continue to provide its services to current students.

20.Grab

Grab made a huge announcement in June about laying off over 1,000 staff. Anthony Tan, the company’s CEO, informed employees of the decision through email, telling them of the latest round of layoffs.

Grab’s decision to reduce its employees is part of the company’s efforts to reduce expenses and restructure its operations. The highly competitive nature of the business in which Grab operates prompted this strategic approach.

21.Glamypo

According to a police complaint cited in a report by YourStory, Glamyo Health is accused of terminating workers without providing them with any advance notice or information regarding their final compensation packages. An employee of New Delhi’s Barakhamba Road police station made the complaint. The complaint also claimed that over the previous few months, the business had repeatedly missed paying salaries.

According to the report, as part of cost-cutting and loss-containment measures, about 50 employees were laid off over the past two months. However, a former worker who was cited in the article claimed that almost all employees had been asked to leave in the previous two days without being given any information about severance pay, salaries, or the reasons behind the sudden layoffs.

22.Happay.

According to sources speaking with Business Today, Happay, a provider of business expense management solutions that Kunal Shah’s CRED acquired in 2021, reportedly underwent a restructuring exercise last week that led to the layoff of over 150 employees. Different positions within the company’s product, operations, and marketing teams were affected by the job cuts.

23.South Asian Lifestyle Network.
About 30 employees of India Lifestyle Network (ILN), which Mensa Brands, a unicorn in the House of Brands, decided to fire, as the company had bought ILN in December of the previous year.

Mensa Brands released a statement to Inc42 in response to the layoffs stating that the restructuring was done to increase productivity after integration. The spokesperson emphasized that ILN is still committed to giving its customers high-quality content and giving its client partners services that are at the forefront of their industry. Less than 30 team members left ILN as a result of a few positions being affected by the restructuring.

24.Kitopi.

Kitopi, a unicorn cloud kitchen platform, has been affected by the tech sector’s downturn in Dubai, which has resulted in a significant reduction in jobs. As part of a recent effort to streamline operations and increase efficiency, the company recently let go of 93 of its head office employees. After years of strong growth, this decision is being made as the global tech industry faces economic uncertainty.

25.Lucid.

The electric vehicle (EV) startup Lucid, known for its Air sedan, which rivals the Tesla Model S, has announced plans to let go of 1,300 employees, or about 18% of its workforce, in the upcoming months.

An email from CEO Peter Rawlinson that was included in a regulatory filing served as the means of communication for the decision. Nearly every department within the company will be impacted by the job cuts, which are expected to affect employees and contractors at all levels, including executives.

26.Lyft.

Lyft, a ride-hailing company, announced that it would fire 1,072 employees, or about 26 percent of its entire workforce. The job cuts are a part of a larger cost-cutting effort launched by the newly appointed CEO, David Risher, who took over earlier this month.

Risher had mentioned the company would make significant job cuts before this announcement, though specific numbers at the time were not made public. As part of the cost-saving measures, Lyft will also eliminate over 250 open positions. During the second quarter, the company will spend between $41 million and $47 million on severance payments and employee benefits as a result of the restructuring.

27.
the LivSpace.

Sources told Inc42 that the home remodeling and interiors platform Livspace recently carried out a cost-cutting exercise that led to the termination of 100 employees, or about 2% of its total workforce. Teams within the company like product, engineering, content, and marketing were significantly impacted by the job cuts.

The company stated in a statement that “our focus continues to be on the most efficient deployment of capital and resources to maximize value for our shareholders, customers, partners, and employees. In a company of our size, we will, in the normal course of our operations, redeploy resources. This is natural and a reflection of standard adjustments and/or performance management criteria. ”.

28.Lido

Employees of the edtech startup Lido were made aware of a financial crisis during a virtual town hall by Sahil Sheth, the company’s founder. In order to raise money or consider the possibility of being acquired, Lido consequently requested the resignation of over 150 employees.

The business gave these impacted workers assurances that they would receive their unpaid salaries for January 2022 and the first week of February 2022 within a 30- to 90-day window. But since the salaries haven’t been paid yet, the workers have taken to social media to air their complaints. Employees have taken to the public in an effort to find a solution due to the delay in salary payments, sharing their concerns and experiences.

29.Meesho.

251 employees were let go as a result of Meesho’s announcement in May regarding a new round of layoffs. This choice follows a comparable reduction in staff the previous year, which affected about 150 workers. Known as the “funding winter,” the startup industry is currently going through a difficult time when it comes to raising money.

Meesho is one of many startups that have turned to cost-cutting measures, including reducing their workforce, to survive this funding winter and ensure sustainability. A Meesho spokesperson said that in order to achieve a leaner organizational structure and long-term profitability, the company made the difficult decision to fire 251 workers, or 15% of their workforce.

30.The Mojocare.

Investors in the health-tech startup Mojocare recently learned of “financial irregularities,” and as a result, they have started a comprehensive investigation into the financial statements of the business. Furthermore, the startup has decided to let go of 170 workers.

Major Mojocare investors like Peak XV Partners (Sequoia India), B Capital, and Chiratae Ventures are taking this seriously and investigating the company’s financial standing. Investors are concerned about the situation, which prompted a review and subsequent job cuts at the startup.

31.Momspresso’s MyMoney.

By the end of this month, Momspresso MyMoney, the company’s influencer engagement platform, will be shut down by Mamaearth, a Direct-to-Consumer (D2C) unicorn preparing for an IPO. The platform has been suffering increasing losses, which is what led to this decision. Unfortunately, this decision has led to the layoff of 80 Momspresso employees.

The top management of Momspresso, including the co-founders, informed the staff about the decision to shut down MyMoney during a town hall meeting in the first week of April. In addition, a number of sources have suggested that Mamaearth may also discontinue MyMoney and the brand marketing division of Momspresso.

32.MyGate.

A significant layoff affecting 30% of the workforce at MyGate, a startup, was recently conducted. Mid-management and lower-level employees within the company felt the effects of this decision strongly. According to YourStory, this layoff represents the second time that these positions have been eliminated, with a comparable number of employees being let go in December 2022. MyGate had a total of 600 employees before the layoff. However, 400 people now make up the workforce after the most recent job cuts.

33.Mystical Games.

Web3 gaming studio, Mythical Games, recently announced that it has laid off 10% of its staff. Although the company did not immediately disclose the exact number of employees affected, its LinkedIn page indicates that it had approximately 320 employees. 

The decision to implement the layoffs was motivated by the economic downturn, which was probably made worse by the difficulties the industry was facing due to the crypto winter. The company is trying to streamline its operations in light of the current economic difficulties as it works to navigate the challenging market conditions.

34.Navi

Around 200 employees from a variety of departments have been laid off by fintech startup Navi Technologies, which is reportedly preparing for an IPO. According to media reports, the management and product development teams have been hit the hardest, with up to 70% of their members being impacted.

The layoffs, according to a fintech unicorn spokesperson, were a result of routine performance reviews that are carried out twice a year. They were explicit in saying that these evaluations result in anticipated company departures. However, questions about any severance packages or entitlements for the affected employees went unanswered by the spokesperson.

35.NinjaCart.

More than 200 employees in important cities like Bengaluru, Chennai, Mumbai, and Hyderabad have recently been laid off by Walmart-backed agritech startup Ninjacart. Several former workers provided Inc42 with this information under the condition of anonymity.

This development comes in response to a report from Inc42 that alleged unfair hiring and firing practices by Ninjacart. Two senior management personnel claim that Ninjacart has been concentrating on cost-cutting measures for a number of months and has been reducing its workforce in ground operations, middle management, and senior management since November 2020. The company has however blamed the layoffs on problems with performance and integrity.

36.OkCredit.

Although the layoffs have been confirmed, the precise number of affected employees has not been made public by OkCredit, a startup backed by Lightspeed. According to the company, extended medical insurance and outplacement services are being offered to help the affected employees.

OkCredit intends to strengthen its growth channels and concentrate on fintech initiatives going forward. The startup is revising its strategies in order to strengthen its position in the industry and advance in the fintech sector.

37.OPEN.

Following a recent performance review, neobanking unicorn OPEN decided to fire 47 employees. The company made it clear that these layoffs were solely motivated by performance reviews. All four OPEN cofounders have voluntarily agreed to forgo their full salaries in order to support the business in light of the current financial difficulties.

However, OPEN guaranteed that no other staff members would experience any pay reductions. The company made clear that it is still actively seeking candidates for key positions in growth marketing, product development, and sales. The goal of OPEN is to keep expanding the company and giving its clients better services.

38.Uber Cabs.

Ola, a cab aggregator, has started a “restructuring” process that will result in the layoff of employees, primarily from its product and tech teams. Inc42 stated that this process has had an impact on more than 200 employees. People in a variety of roles within the Ola Cabs, Ola Electric, and Ola Financial Services verticals have been impacted by the job cuts.

Sources claim that the company has provided severance packages to the impacted employees in accordance with their respective notice periods. Ola is undergoing this restructuring to adapt to shifting market conditions and streamline its operations; layoffs started earlier this week.

39.1K Kirana.

1K Kirana, a Kirana tech startup with offices in Gurugram, recently let go of 40% of its staff. The company attributed the job cuts to a restructuring initiative and the choice to shut down operations in some regions.

The startup had 1,052 employees at the beginning of April, according to its LinkedIn page, meaning that 421 of them were affected by the layoffs. However, according to media reports, the actual number of impacted workers may be higher, possibly exceeding 600. The company has decided to restructure as it attempts to optimize its operations and adjust to the shifting market dynamics.

40.Practo

A healthcare startup called Practo recently let go of 41 employees as part of its process for performance management and planning. In a statement to Inc42, the business acknowledged this development and promised to provide the impacted employees with all the support they need.

Practo made it clear that it is not undergoing any restructuring at the moment. Instead, the choice to fire these workers was made based on poor performance. The company made it clear that the job cuts had nothing to do with a more extensive organizational reorganization and were solely intended to address performance issues.

Leave a Reply

Your email address will not be published. Required fields are marked *