The rising number of layoffs by startups and digital platforms is expected to slow down by mid-2023, hiring experts told FE. By the middle of next year, companies in the digital space may go back to hiring to fuel their growth plans, they said.
Further, employees who may have been laid off by startups but possess skills in niche areas stand a good chance to get hired by MNCs across other IT domains in industries like insurance, banking, finance, and others.
“Startups in India still have a very large workforce with high attrition of around 25-30%. This means even as they cut back on jobs, many will continue to hire to fill attrition. With the next academic year, fresher hiring will be back in full swing, especially among startups…and I expect layoffs to slow down fully by the first quarter of the next financial year,” Sekhar Garisa, CEO, Monster India, said.
“During economic slowdowns, large MNCs usually turn to offshore hiring in countries like India for talent. Hence, niche skilled employees stand a good chance to find new jobs,” Ashish Gupta, co-founder and CEO of Benori Knowledge, which offers consulting services to startups, said.
Garisa pointed out that around 500,000 job listings are currently live on the hiring platforms are in fact from tech startups looking to hire. However, perks and salary expectations have levelled off compared with the pre-Covid era. According to him, another emerging trend could be of mid-career employees beginning to opt for upskilling to get into niche roles, where demand would rise but supply may not be adequate.
“There are currently 25,000 jobs for data analysts on the master platform. Upskilling courses offered by edtechs and others are expected to fill in this gap, since most of these course providers are successful in providing better compensation or a better job,” he added.
The tech industry, including Big Tech and startups, together have laid off over 16,000 employees in the current calendar year so far. Many of these include unicorns, late-stage firms and even early-stage startups that were unable to raise crucial cash amid the funding crunch. The consumer internet segment currently remains the most affected in terms of job cuts. Startups in edtech, fintech, hyperlocal delivery, insurtech, content and gaming, logistics and online commerce are some of the worst affected. According to some estimates, edtech was the worst affected with 14 edtech startups laying off 6,898 employees in 2022.