Fears of economic recession around the world are disturbing start ups. Lack of funds is the main problem plaguing these companies now. With this, steps are being taken to reduce the management burden. As part of that, many companies have already started the process of dismissal of employees. A popular report has estimated that 60,000 employees will be laid off by startup companies in India this year.
Already, many famous seed companies (Start Ups) have given guidance to around 12 thousand employees. Among these are prominent companies like Ola, Blinkit, Byjus, UnAcademy, Vedantu, Cars24, Mobile Premier League, Lido Learning, Mfine, Trail, FarEye, Furlanco. According to the report, startups are likely to lay off another 50,000 people this year in the name of reorganization and cost management. startup companies, which made huge profits during the Corona crisis, are now facing severe pressure. Incomes are shrinking and their value is gradually decreasing. As a result fundraising has become more difficult than in the past.
This is the situation in America...
International companies like Netflix and Robinhood are also working to reduce the number of employees. According to a report released by Crunchbase, the condition of tech workers in America is becoming miserable. So far in 2022, 22 thousand employees have gone home. Netflix has laid off 450 people, equivalent to 4 percent of its workforce. PayPal laid off 83, Robinhood 300 and Virgin Hyperloop 111. On the other hand, crypto exchanges such as Vald, ByBit, Coinbase, Gemini, Crypto.com and Bitpanda have also announced that they will reduce the number of their employees. Niantic, developer of the Pokemon GO game, has sent 90 employees home. On the other hand, Tesla CEO Elon Musk also said that 10 percent of people will be fired.