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In 2023, there was a 15% increase in technology-related layoffs within the startup sector.

Writer's picture: RISHI KORDERISHI KORDE



In 2023, a total of 261,847 individuals worldwide experienced job cuts, with the majority (70%) occurring in the United States. This marked a 15% increase in tech-related layoffs within startups compared to the previous year. The impact of layoffs extends beyond the immediate workforce, causing uncertainty, financial challenges, and emotional distress.

Layoffs.fyi, a platform monitoring tech job cuts, reported over 16,000 individuals affected, emphasizing the trend within startups rather than established tech corporations. The data, though not precise, provides a general overview. The platform highlighted a concerning daily average of 45 job losses, reflecting a 15.3% increase from the previous year's count of 14,224 layoffs.

Bangalore, India's tech hub, witnessed the highest concentration of job cuts, followed by Gurugram, Mumbai, and Noida. Simultaneously, startup funding experienced a significant decline in 2023, reaching $8.1 billion amid 16,398 job losses. This contrasts sharply with the $25.9 billion funding in the preceding year when 14,224 individuals were laid off.

Notably, Paytm, a major fintech player, initiated layoffs affecting 1,000 employees, contributing to a sector-wide tally of 2,141 job cuts. The ed-tech sector faced the most significant impact with approximately 4,700 layoffs, followed by the food, finance, retail, consumer, and healthcare sectors.

Funding within the ed-tech sector plummeted by 88.9% from $2.5 billion in 2022 to $0.3 billion in 2023. Similarly, food and agriculture tech startups saw a decline of 73.5%, while fintech startups witnessed a 66.1% decrease.

Consumer-based startups secured the highest funding at $3.9 billion in 2023, followed by retail, fintech, enterprise applications, and transportation and logistics tech.

Globally, the United States, India, Germany, Sweden, and the United Kingdom were the most affected countries, illustrating significant turbulence in employment and funding across diverse sectors and geographical locations in the tech and startup landscape.


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