Layoffs decline 80% among startups in 2024
By : Sangeetha G
Update: 2025-01-05 06:38 GMT
Chennai: The end of funding winter helped the startups stabilise in 2024 as the number of layoffs witnessed an 80 per cent drop against the previous year. However, startups shutting shop remained unabated indicating that investors were choosy about their funding plans.
In 2024, the startup ecosystem saw around 4,700 employees being laid off. This was 80 per cent lower than the 24,000 layoffs reported in 2023 and 20,000 in 2022, as per the data of TheKredible.
Among the major companies who shed their weight, BYJU's laid off 500 employees, followed by Reshamandi with 400. Swiggy ranked third with 350 affected employees, while Unacademy and WayCool shed 250 and 200 employees, respectively.
Although the number of layoffs saw a sharp decline, shutdowns in 2024 rose to 17 compared to 15 recorded in 2023. Investors seem to have remained cautious about where to invest their money after the funding winter.
Notable closures included music streaming app Resso, which shut its India operations in January. The social media platform Koo, which had posed as an alternative to Twitter, shut shop in July. Kenko Health closed down in August after running out of funds and failing to secure the insurance licence from IRDAI.
Further, in 2024 the startup ecosystem saw notable leadership transitions, with over 100 senior executives, including CEOs, MDs, CPOs, and co-founders, stepping down. At the same time, more than 200 key executive roles were filled, reflecting a period of significant change.
Activity related to ESOPs remained subdued. The total ESOP buyback, payout, and liquidity in 2024 reached approximately $190 million, lower compared to $802 million in 2023, $440 million in 2021, and $200 million in 2022.
In 2024, the startup ecosystem saw around 4,700 employees being laid off. This was 80 per cent lower than the 24,000 layoffs reported in 2023 and 20,000 in 2022, as per the data of TheKredible.
Among the major companies who shed their weight, BYJU's laid off 500 employees, followed by Reshamandi with 400. Swiggy ranked third with 350 affected employees, while Unacademy and WayCool shed 250 and 200 employees, respectively.
Although the number of layoffs saw a sharp decline, shutdowns in 2024 rose to 17 compared to 15 recorded in 2023. Investors seem to have remained cautious about where to invest their money after the funding winter.
Notable closures included music streaming app Resso, which shut its India operations in January. The social media platform Koo, which had posed as an alternative to Twitter, shut shop in July. Kenko Health closed down in August after running out of funds and failing to secure the insurance licence from IRDAI.
Further, in 2024 the startup ecosystem saw notable leadership transitions, with over 100 senior executives, including CEOs, MDs, CPOs, and co-founders, stepping down. At the same time, more than 200 key executive roles were filled, reflecting a period of significant change.
Activity related to ESOPs remained subdued. The total ESOP buyback, payout, and liquidity in 2024 reached approximately $190 million, lower compared to $802 million in 2023, $440 million in 2021, and $200 million in 2022.