Layoffs in India

PaisaBazaar laid off 1,500 employees representing approximately 50% of its workforce on 2020-06-16.

In June 2020, the online travel aggregator MakeMyTrip announced it would lay off approximately 350 employees, representing about 10% of its workforce. The decision was driven by a severe downturn in the travel and tourism industry due to the COVID-19 pandemic, which caused global travel restrictions and a sharp decline in revenues. CEO Deep Kalra explained that the company needed to adjust its business strategies as a recovery in travel demand was not expected soon. The layoffs primarily affected non-tech roles at the group level, including within its Goibibo unit. MakeMyTrip, a major player in India's online travel sector, also noted it had previously implemented salary furloughs and provided affected employees with benefits like extended medical coverage and outplacement support.

In May 2020, BookMyShow laid off or furloughed 270 employees, impacting 18% of its global workforce of 1,450. The online ticketing platform, operating in the entertainment and events industry, took this difficult step due to the severe and prolonged impact of the COVID-19 pandemic on out-of-home entertainment. In a company-wide email, CEO Ashish Hemrajani cited the need to adjust the business for an uncertain future. While the exact split between layoffs and furloughs was not specified, affected employees received support packages, and remaining leadership teams took voluntary pay cuts to help navigate the crisis.

In May 2020, the online automobile marketplace CarDekho laid off over 200 employees, a move that impacted its workforce of approximately 5,000, including third-party staff. This reduction, representing a significant portion of its personnel, was driven by severe challenges in the automobile sector, which faced a sharp downturn with no business for two months and uncertain prospects for the following six to eight months. Concurrently, the company implemented pay cuts across various salary brackets, ranging from 12% to 45%, with senior management absorbing the highest reductions. As a unicorn startup valued around $643 million and backed by investors like Sequoia Capital, CarDekho's actions reflect the broader industry strain during the COVID-19 pandemic, affecting other players in the used-car digital marketplace as well.

In May 2020, Chennai-based online travel startup PickYourTrail announced a strategic business realignment in response to the COVID-19 pandemic's severe impact on international travel. While the article does not specify exact layoff numbers, the context implies workforce adjustments as the company pivoted to survive. Historically focused solely on curated international vacation experiences since its 2014 founding, the startup shifted to enter the competitive domestic travel market, targeting a mid-June launch to align with India's resumption of domestic flights. This move, driven by necessity to ensure survival amid stalled global tourism, involved reorienting its business model and supply chains to cater to local travelers seeking closer-to-home experiences, marking a significant operational change for the small to mid-scale travel tech company.

ShareChat, a Bengaluru-based regional social media startup backed by Twitter, laid off 101 employees on May 20, 2020, representing about 25% of its workforce. The company cited an unpredictable advertising market severely impacted by the COVID-19 pandemic as the primary reason. Having only begun monetizing through ads in October 2019, ShareChat stated it needed to refocus on its core product and fundamental growth levers to sustain the business. The affected employees were offered support, including a "garden leave" option and professional resume-building assistance.

In May 2020, Indian ride-hailing firm Ola laid off 1,400 employees, representing 35% of its workforce in India, as the company grappled with the severe impact of the COVID-19 pandemic. The layoffs, announced by CEO Bhavish Aggarwal, were a response to a dramatic 95% drop in revenue over two months following a nationwide lockdown that halted mobility services. The job cuts were confined to the mobility and food operations teams within India, while Ola Electric remained unaffected. Aggarwal cited the prolonged and uncertain crisis, noting that the shift in consumer behavior, including increased remote work and reduced travel, would have a long-term impact on the business. Affected employees received three months of salary and extended benefits.

Livspace, a home interior and renovation platform, laid off approximately 100 employees, which represents about 2% of its workforce. The decision, made in early 2024, is part of a restructuring effort to improve profitability and operational efficiency amid a broader market correction in the tech and startup sector. Operating in the proptech and home services industry, the company aims to streamline its operations to achieve sustainable growth.

Swiggy laid off 1,100 employees representing approximately 14% of its workforce on 2020-05-18.

In May 2020, the online real estate platform Magicbricks laid off approximately 250 employees as part of broader cost-cutting measures. The layoffs, which affected various business roles, occurred amid the economic downturn caused by the COVID-19 pandemic and subsequent lockdowns, which severely impacted demand across sectors. The company, owned by Times Internet, reportedly asked some employees to resign without severance pay while serving a notice period. This move was part of a wider trend of downsizing and operational streamlining observed among Indian startups and unicorns, particularly in travel, hospitality, and real estate, as companies sought to conserve cash during the crisis.

Fintech startup Lendingkart has laid off over half of its workforce, affecting more than 250 employees out of a total of around 500, with immediate effect across its offices in Ahmedabad and Bangalore. The drastic cuts come as the company, an NBFC focused on lending to small and medium enterprises, faces severe pressure from the COVID-19 pandemic and India's economic slowdown. Despite the CEO recently highlighting digital lending as an opportunity during the crisis, the core MSE sector it serves has been brutally hit by the lockdown, compromising demand and likely straining liquidity. Employees reported being asked to resign voluntarily with vague compensation terms, without a clear official announcement from the company.

In mid-May, Zomato, an India-based restaurant guide and food delivery startup, laid off 520 employees, which represents about 13% of its workforce. This significant reduction was a direct response to huge declines in food delivery activity. The company also implemented temporary pay cuts for remaining staff starting in June. To support those affected, Zomato created an official talent directory to help ex-employees connect with new opportunities, a move echoed by other major startups.

Curefit laid off 800 employees representing approximately 16% of its workforce on 2020-05-04.

Indian hospitality startup OYO, valued at $10 billion and backed by SoftBank, is laying off 150 to 200 of its roughly 300 UK employees, representing a reduction of 50-67% of its workforce there. The company, which operates a platform for booking budget hotel rooms, announced the redundancies in late March 2020, citing the severe impact of the COVID-19 pandemic. UK chief Rishabh Gupta stated that hotel occupancy had plummeted by 80%, forcing the company to align costs with drastically reduced revenue. This move came just weeks after the CEO had assured staff of minimal layoffs, highlighting the rapid and severe economic shock caused by the global health crisis.

In May 2020, the Sequoia-backed travel startup Flynote, based in Bengaluru, laid off over 90 employees from its total workforce of 130, representing more than 69% of its staff. This drastic reduction was a direct result of the COVID-19 pandemic and the ensuing nationwide lockdown, which devastated the travel and tourism industry. The company cited a severe lack of funds, having nearly depleted the ₹14 crore raised in 2019, and was forced to make permanent layoffs to stay afloat. Notifications were sent via email in early April, with the layoffs effective from March 31, 2020. While co-founders claimed to have paid most salaries and set up a customer refund fund, some employees reported missing March salaries and a lack of severance. As a consumer-facing travel startup offering customized tour packages, Flynote exemplifies the severe impact the pandemic had on early-stage ventures in the sector.

OYO laid off 500 employees on 2020-04-25.

Swiggy, the Indian online food delivery startup, is laying off approximately 800-900 employees, primarily from its cloud kitchen division, as part of a cost-cutting plan approved by its board in April 2020. This represents a significant reduction, though the exact percentage relative to its total workforce at the time is not specified. The layoffs are a direct response to the severe economic impact of the Covid-19 pandemic, which forced the company to shut down around half of its cloud kitchens and renegotiate rents. The Bengaluru-based unicorn, operating in the food delivery and consumer internet industry, cited the need to stay nimble and focus on profitability during the extended lockdown. While some layoffs were based on performance reviews, the broader context is a wave of job cuts across startups aiming to preserve cash during the crisis.

Indian digital payments giant Paytm is laying off approximately 500 to 700 employees, representing about 5% to 10% of its workforce, following its annual performance review cycle. The company cited that these employees were identified as underperformers based on its performance metrics. In light of the current economic climate, Paytm will retain these employees on its payroll for an additional two months to support their transition and ensure they receive all due payments. Concurrently, the fintech unicorn plans to hire over 500 new staff for roles in financial services, product, and technology, and has allocated ₹250 crore for employee stock option plans to reward high performers and new hires.

Indian logistics startup BlackBuck is laying off between 200 to 250 employees, primarily from its customer experience and operations teams, as a direct result of the severe disruption caused by the nationwide COVID-19 lockdown in early 2020. The lockdown drastically reduced the movement of goods across the country, crippling operations for logistics firms. The layoffs, confirmed in April 2020, represent a significant workforce reduction for the startup, which had raised over $200 million from prominent investors and served major clients like Asian Paints and Hindustan Unilever. The company was reportedly attempting to help place the affected employees in other organizations.

In June 2020, amid the COVID-19 pandemic and a nationwide lockdown in India, the customer engagement platform CleverTap implemented layoffs as part of cost-cutting measures to ensure business survival. While the exact number of employees let go was not specified in the provided article excerpt, the context indicates it was part of a broader wave of workforce reductions across the Indian startup ecosystem. The industry-wide crisis forced many tech companies, including unicorns and growth-stage startups, to make difficult choices between preserving jobs and extending their financial runway. CleverTap, operating in the SaaS and marketing technology industry, took this step during a period of severe economic uncertainty and falling demand across sectors.

Shop101, a Mumbai-based social commerce startup, laid off approximately 200 employees in early April, representing nearly 40% of its total workforce of 400-500. Additionally, around 100 contractual call center staff were terminated. The company, which had recently secured INR 28.69 crore in Series C funding in late March, cited cash flow challenges exacerbated by the COVID-19 pandemic as the reason for the downsizing. Originally planned for June, the layoffs were accelerated. Remaining employees faced pay cuts of 15-30%, while founders took 50% reductions. The move surprised staff, especially after internal reports of INR 100 crore profits for FY19-20 in February. Severance was inconsistent, with some receiving only one month's pay.

In April 2020, the social commerce startup Meesho laid off over 200 employees, representing more than 28% of its then 700-strong workforce. This drastic measure was a direct response to the severe business decline caused by the Covid-19 pandemic and the nationwide lockdown in India, which halted sales of non-essential items. The layoffs, advised by investors, primarily affected key account managers responsible for vendor onboarding, as well as staff in customer support, operations, and marketing. The company aimed to convert fixed salary costs into variable expenses by outsourcing vendor acquisition. Additionally, Meesho was considering significant salary cuts for senior employees to navigate the financial crisis, highlighting the pandemic's severe impact on the e-commerce and social commerce industry.

Cogito laid off 24 employees representing approximately 14% of its workforce on 2020-04-06.

Astra, a San Francisco-area rocket startup in the aerospace industry, reduced its workforce last month, cutting overall headcount from about 150 to roughly 120 employees—a reduction of approximately 20%. This move involved a mix of furloughs and a few permanent layoffs, primarily to conserve cash amid delays caused by the coronavirus pandemic. The company, which has raised around $100 million from investors, now expects its funds to last only until the first quarter of the next year. Compounding its challenges, Astra recently suffered a significant setback when a fire during testing in Alaska destroyed one of its rockets, delaying further launch attempts for months. The pandemic has also strained its customer contracts, with about half looking to renegotiate or withdraw.

Instamojo laid off 6 employees representing approximately 6% of its workforce on 2020-04-02.

Shuttl, an Indian travel tech startup, has laid off 40 employees across various teams, including its on-ground operations staff, as the COVID-19 pandemic severely disrupts the travel industry. The layoffs occurred in late March or early April 2020, with the company directing some employees to resign and terminating others. Those who resigned were offered one month's pay, while terminated employees faced delays in receiving their full and final settlements. This move reflects broader industry pressures, with many VC-funded startups resorting to workforce reductions to conserve cash and extend their operational runway during the economic downturn.

In early April 2020, amid the global COVID-19 pandemic, Indian insurtech startup Acko laid off approximately 45 to 50 employees, representing about 9-10% of its then workforce of 480-500. The layoffs, primarily affecting operations and marketing roles, were part of broader cost-cutting measures to extend the company's financial runway during a period of economic uncertainty. Senior leadership also took voluntary salary reductions of 50-70%. CEO Varun Dua cited specific business lines being impacted with no near-term recovery in sight, necessitating team consolidation. Despite the insurtech sector being relatively resilient, the pandemic prompted Acko, a venture-backed startup, to rationalize its structure to weather the storm.

Budget hotel chain FabHotels laid off approximately 80 employees on March 30, 2020, as the COVID-19 pandemic severely impacted the travel and hospitality industry. This reduction affected about 20% of its roughly 400-person workforce, with cuts in operations and sales roles. Additionally, the company implemented salary reductions of 15-25% across all remaining staff, including co-founders, to conserve cash. The layoffs and pay cuts reflect the broader crisis hitting Indian startups in the sector, with FabHotels warning of further job losses if conditions did not improve by early May.

Travel tech startup TravelTriangle laid off approximately 250-300 employees, representing about 50% of its workforce of around 600, in late March 2020 due to the severe impact of the COVID-19 pandemic. The travel and hospitality industry faced a near-total halt in business, forcing the company to conserve resources. Affected roles included operations, marketing, customer support, and business development. This move marked one of the first major layoffs in India's travel sector during the crisis, with concerns that further job cuts might follow if conditions did not improve.

Fareportal laid off 200 employees on 2020-03-26.

Bounce laid off 120 employees on 2020-03-19.