Worst of layoffs likely over, startups hand out fewer pink slips in H1

Indian startups fired fewer employees in the first half of 2024 compared with the previous six months and a year earlier, an indication that the worst of the layoffs may be over for the sector though it is still not out of the woods.

Startups cut about 11,250 jobs during the January-June period this year, compared with 21,000 in the first half of 2023 and 15,000 in the second, according to data from executive search firm Longhouse Consulting.

Industry executives and hiring experts said while layoffs may be down from the 2023 highs, they aren’t over as startups deal with a constrained funding environment and cost conservation focus, especially for those preparing for initial public offering. There are also others that are grappling with regulatory or legal issues.

“The intensity has reduced; the bottom is behind us but it’s not like good days are immediately ahead,” said Anshuman Das, chief executive of LONGHOUSE Consulting that put together the data for ET.

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