Layoffs In 2023: The startup world has been struggling for a long time. Since last year, startup companies have been facing difficulties, due to which large-scale layoffs are going on around the world. Now more than 7 months of this year have passed, but there is no respite from the hit of layoffs in startups.
Figures in this regard have been given in a report by CIEL HR, a company providing hiring solutions. According to statistics, thousands of people have lost their jobs in startups during the first six months of this year. According to the report, from January to June 2023, more than 70 startups have reduced their workforce and more than 17 thousand people have been affected in this.
Edtech, e-commerce, fintech, foodtech, healthtech and SaaS sector companies are prominent among the startup companies that have laid off. As per the report, 6 startups have laid off in edtech. At the same time, 17 new companies in business-to-consumer e-commerce and 3 startup companies in business-to-business segment have fired their employees during the first six months of the year.
Similarly, in the world of fintech, 11 startups have been laid off, including companies providing API banking products, brokerage, mutual funds, credit cards, insurance and payment solutions. 11 startups in the Software as a Service (SaaS) industry have reduced the number of employees.
The reason behind the retrenchment
According to CIEL HR, the main reason for layoffs in startups is the prolonged funding winter. According to the report, new-age companies are facing difficulties in raising funding, due to which it is becoming difficult for them to maintain the pace of growth. During the first six months of the year, there has been a massive decline of 79 per cent in venture capital activities.
In a Business Today news, it has been told by Venture Intelligence that during the first half of the year 2023, the total investment in startup companies was $ 3.8 billion, which was $ 18.4 billion a year ago. Similarly, the number of deals decreased by 60 percent from 727 a year ago to just 293.