Startups are bouncing back, with layoffs dropping sharply and hiring on the rise in 2024 as funding shows signs of recovery. Data from layoffs.fyi shows 43 startups laid off 8,895 employees this year – nearly half of the 16,398 sacked by 111 firms in 2023.
Paytm’s parent, One97 Communications, accounted for the largest share of layoffs, cutting 3,500 sales jobs after an RBI ban on Paytm Payments Bank services. Flipkart also laid off over 1,000 employees in January as part of restructuring, while Ola Electric reduced its headcount by 500 in a cost-cutting drive.
Globally also the same trend prevailed. Layoffs fell 43%, with 539 tech firms cutting 150,034 jobs in 2024, compared to over 264,000 layoffs by 1,194 companies last year.
Startups’ hiring cycles are closely tied to funding availability. With funding rebounding slightly to $11.3 billion this year after a two-year decline, startups are prioritising growth over austerity, driving new recruitment.
“About 150,000–200,000 tech jobs were added in 2024, with fresher hiring also improving in retail, e-commerce, and tech,” said Neeti Sharma, CEO of IT staffing firm Teamlease Digital. This represents a significant jump from last year’s figures.
Looking ahead, the startup ecosystem is projected to add 200,000–250,000 new jobs in 2025 and half a million by 2030. “With 225–250 unicorns expected next year, startups will employ 3–3.5 million people, driving stronger hiring momentum,” Sharma added.