India’s tech industry is also facing a tough time as layoffs continue after big companies like Twitter, Meta and Apple laid off thousands of workers last year. The latest report reveals that ShareChat – which has Google as an investor – will lay off 20% of its workforce. But ShareChat is not the only tech player in India that is looking at job cuts, major ed-tech companies and other players are also taking similar steps. Even Goldman Sachs laid off around 700 employees in India. Here’s a quick look at the most recent layoffs in the Indian tech industry amid the economic downturn.
ShareChat is back with fresh layoffs after laying off 5 percent of its workforce in December last year. Mohalla Tech, the parent company behind ShareChat and Moj, is laying off 20% of its workforce, or over 400 employees. Most of the affected workers are located in India. While the short-form video-sharing platform has seen a surge in popularity during the pandemic, its growth has come amid intense competition from Instagram. According to ShareChat, the decision was taken “in light of the growing market consensus that investment sentiments will be very cautious this year.”
As part of its restructuring exercise, Ola has started laying off over 200 employees from Ola Cabs, Ola Electric and Ola Financial Services verticals. Although the company announced in September that it would be laying off workers, those layoffs appear to have been delayed until now.
Last year, Ola shut down its used car business, Ola Dash, a store-to-home delivery service for cars. The company seems to be shifting its focus to engineering, with a recent announcement that it plans to hire 5,000 engineers for its electric vehicles. A strong workforce in this unique vertical will help the company expand its capabilities in EV and battery manufacturing and self-driving technology development.
Amazon has announced that it will lay off more than 18,000 workers starting January 18. The company cited an “uncertain economy” as the reason for the layoffs. These numbers are two-fold since November, which announced more than 10,000 layoffs. Most of these removals are from Amazon stores and PXT (People Experience and Technology Solutions) teams. Amid these layoffs, an Amazon employee anonymously took to the grapevine to describe the “current situation” at the company’s India offices. They said 75 percent of their team was gone and they were deeply affected by the cuts.
Edtech giant Baiju announced last month that it will cut its workforce of 50,000 by 5% in March this year. The company has already laid off around 100 employees from its media content division in Kerala. In an email to employees, the company’s CEO Baiju Ravendran said the job cuts are due to negative macroeconomic factors, forcing it to focus on capital-efficient growth and sustainability. The layoffs took place at a time when schools and colleges reopened and learning moved into a mix of online and offline classes.
Indian express grocery delivery service Dunzo on Monday confirmed it has cut 3 percent of its workforce as part of cost-cutting measures. The company’s CEO Kebir Biswas said the company is looking at team structures and network design to build efficiency. The platform also stated that it is doing all it can to support the workers during the transition. Although it doesn’t provide much detail.
Bijus is not the only edtech unicorn in India that has seen job cuts as the edtech scene as a whole has been experiencing widening losses in recent times. Another such company is Upgrad, whose CEO Arjun Mohan recently announced his resignation amid challenges and layoffs. The platform is said to be planning to lay off a third or more of its workforce in the coming days. UpGrad-owned Harappa Education, another Upgrad-owned edtech platform, has cut about 40% of its workforce, or 73 employees.