Startup Layoffs Down 62% In '24 So Far

A fter a string of layoffs, startups in India this year are expected to step up hiring by more than 10 per cent over last year, according to human resource platforms.

- ARYAMAN GUPTA

Layoffs too have fallen year on-year (Y-o-Y). Firms let go of 3,600 employees in the first five months of the year (JanuaryJune), a 62 per cent decline over the 9,596 in the same period the previous year.

In the whole of 2023, there were 16,398 dismissals, according to Layoffs.fyi.

With the startup world on the mend, there has been an almost 40 per cent increase in new startups, which has, in turn, led to a 15 per cent increase in the number of new jobs, said Sachin Alug, chief executive officer (CEO) of talent solutions firm NLB Services.

"Hiring in the past quarters grew by an average of 9-10 per cent. Considering that, we expect the coming months to exhibit a better hiring outlook from employers, especially due to the upcoming festival season," he said.

Startup funding in the first half (H1) of 2024 showed an upward trend compared to the second half (H2) of 2023. Although funding declined 13 per cent year-on-year (Y-o-Y) in H1 2024, budding companies raised $4.1 billion, marking a 4 per cent increase from the $3.96 billion in H2 2023, according to the data from Tracxn, a market intelligence platform.