Layoffs figures 3x higher than reported numbers due to silent layoffs, forced resignations: Report

Data from tech focussed hiring firm TopHire indicates that around 100,000 employees have been laid off in India in the past two years, which is far higher than publicly reported numbers.

TopHires’ data highlighted that 91,000 employees have been laid off across India in the past two years, reported Mint.

It is worth noting that as per layoffs.fyi, a publicly available layoffs data aggregator, around 27,850 employees have been laid off in India since September 1, 2021. This is roughly one third of what is reported by the tech hiring firm.

This vast difference in the numbers is due to silent or concealed layoffs and forced resignations, the report stressed.

Data from Layoffs.fyi highlights that out of the total reported layoffs in India in the past 2 years, majority jobs have been lost in the education or edtech sector. Data indicated that 10,679 jobs have been slashed in the sector across leading companies like BYJU’s, Unacademy, Vedantu, upGrad, and others.

Edtech company BYJU’s has laid off the most number of people as per layoffs.fyi. The company has eliminated around five thousand jobs in over four downsizing rounds. 

After education and edtech, the retail and e-commerce sector had the highest number of job cuts in the past two years. Over 3,400 employees lost their jobs and companies like Myntra, Meesho, Mamaearth, Flipkart, Udaan, Dukaan, and others.

Food delivery and quick commerce sectors came in third with 3195 job cuts. Zomato, Swiggy, Reliance JioMart, Swiggy, Dunzo, among others cut jobs in the sector.

The layoffs are a result of subdued venture funding, which has led to many start-ups trying to cut costs to stay afloat.

As per statistics from GlobalData, 459 venture capital (VC) deals worth $3.4 billion were closed between January and May 2023. This is far below compared to the 851 deals worth $13.3 billion closed in the year-ago period.

Due to the cutback in VC funds, companies are forced to execute cost cutting measures to sustain their business. Layoffs are one means to this end.

But it is worth noting that while a major part of layoffs in India are due to cost-cutting measures, many individuals lost their jobs due to corporate governance lapses and companies being wound down. GoMechanic, Mojocare, Trell, and others are examples of such cases.