US loses almost 22,000 IT jobs, and Indian businesses lay off 12,000 employees
Considering the case of India, edtech and e-commerce platforms may be responsible for over 60,000 employment losses in the startup industry in 2022 alone.
More than 22,000 people in the IT and startup sector, along with more than 12,000 in the Indian startup ecosystem, have lost their employment in 2022 amid the worldwide showdown brought on by the COVID-19 Pandemic and inflation, according to Chrunchbase.
The article claims that as valuations have begun to fall, firms that benefited from a pandemic boom are feeling the pressure. The startups claim that a depressing climate makes it considerably harder for them to secure new capital.
Companies like Netflix, Robinhood, and a number of other cryptocurrency platforms have reduced their employee counts. Additionally, businesses connected to cryptocurrencies including Coinbase, Gemini, crypto.com, Vauld, Bybit, Bitpanda, and others indicated that they will be reducing their staff.
Even Tesla creator Elon Musk just reduced 10% of the company’s salaried personnel.
According to the report, edtech and e-commerce platforms may account for more than 60,000 of the employment losses in the startup sector in India in 2022.
Nearly 12,000 people have been let go by startups including Ola, Blinkit, BYJU’s, Unacademy, Vedantu, Cars24, Mobile Premier League, Lido Learning, Mfine, Trell, farEye, Furlanco, and more.
According to experts, startups may eliminate more than 50,000 employment by the end of 2022 under the guise of “restructuring and cost management.”