After top companies such as Twitter, Meta and Apple laid off thousands of employees last year, the Indian tech industry is also facing challenges as layoffs continue. The latest report is that ShareChat, which has Google as an investor, has announced that he is giving up 20% of his workforce. However, ShareChat isn’t the only Indian tech company looking to cut jobs, major education tech companies and others are doing the same. Even at Goldman Sachs in India he laid off nearly 700 employees. As the economic slowdown looms, let’s take a quick look at the latest layoffs in the Indian tech industry.
ShareChat is back with fresh job cuts after laying off 5% of its staff last December. Mohalla Tech, the parent company of ShareChat and Moj, will furlough his 20% of its workforce, or more than 400 of his. Most of the affected employees are based in India. The short-form video-sharing platform was hugely popular during the pandemic, but then its growth plateaued amid fierce competition from Instagram. ShareChat said the decision was made “in view of the growing market consensus that investment sentiment remains very cautious throughout the year.”
Ola began laying off more than 200 employees from the Ola Cabs, Ola Electric and Ola Financial Services industries as part of its restructuring. The company announced in September that it would lay off employees, but the cuts appear to have been delayed until now.
Last year, Ola closed its used car business, Ola Cars, and its over-the-counter delivery service, Ola Dash. The company recently announced plans to hire 5,000 of his engineers for the electric vehicle industry, and appears to be shifting its focus to engineering. A stronger workforce in this particular area will help the company expand its capabilities across his EV and battery manufacturing and self-driving technology development.
Amazon recently announced that it will lay off more than 18,000 employees starting January 18th. The company cited an “uncertain economy” as the reason for the layoffs. Those figures are double his numbers from his initial announcement in November that advertised layoffs of more than 10,000 employees. Most of these removals are due to the Amazon store and his PXT (People Experience and Technology Solutions) team. Amidst these layoffs, an Amazon employee anonymously accessed his GrapeVine to explain the “current situation” of the company’s India office. They said 75% of their team was missing and was heavily impacted by layoffs.
EdTech giant Byju’s last month announced it would cut 50,000 employees by 5% by March this year to cut costs. The company has already laid off about 100 employees from its media content division in Kerala. The company’s CEO, Byju Raveendran, said in an email to employees that the job cuts were the result of unfavorable macroeconomic factors, focusing on capital efficient growth and sustainability. Layoffs are occurring as schools and colleges reopen and learning becomes a mix of online and offline classes.
Indian grocery delivery service Dunzo confirmed on Monday that it has laid off 3% of its workforce amid cost-cutting measures. Kabir Biswas, his CEO at the company, said he is looking at team structures and network designs to increase efficiency. The platform also said it was providing the best possible support to ease the process for its employees during the transition, but didn’t provide many details.
Byju’s isn’t the only EdTech unicorn in India to cut jobs. Another such company is UpGrad. The company’s CEO, Arjun Mohan, recently stepped down amid challenges and layoffs. The company denies such reports, but the platform reportedly plans to lay off more than about a third of its workforce in the next few days. , another EdTech platform owned by Upgrad, has already laid off about 40% of its workforce, or 73 employees.