The global tech sector has experienced a significant wave of job losses in the first half of 2023, affecting over 212,000 employees across various tech companies, from Big Tech firms to startups. Data from the layoffs tracking site Layoffs.fyi reveals that 819 tech companies have laid off employees, marking a continuation of the trend seen in the previous year.
According to IANS, In 2022, more than 161,000 employees were laid off by 1,046 tech companies. Consequently, the total number of tech employees who have lost their jobs since 2022 stands at approximately 380,000 as of June this year.
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Big tech companies have cited different reasons for these layoffs, including over-hiring, uncertain global economic conditions, and the waning tailwinds from the Covid-19 pandemic. The situation is equally concerning in the Indian tech ecosystem, with more than 11,000 employees from startups being laid off this year, a nearly 40% increase compared to the same period last year. India's layoffs now account for about 5% of global startup layoffs.
Since the funding winter began in 2022, 102 Indian startups have laid off over 27,000 employees. The impact has been particularly noticeable in the edtech sector, with around 22 edtech startups, including five out of seven unicorns, letting go of nearly 10,000 employees.
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Adding to the challenges, no new unicorns emerged in India during the first half of 2023, and startup funding plunged by over 70% compared to the previous year's January-June period. These indicators suggest that the funding winter is likely to persist, as several top unicorns grapple with the economic downturn.
According to data from market intelligence firm Tracxn, Indian startups managed to raise only $5.48 billion in the first six months of 2023, a substantial decline from the $19.5 billion raised during the same period last year. This funding shortfall reflects the ongoing challenges faced by startups in securing financial support.
Inputs from IANS
