CHART OF THE WEEK 📈
Layoffs are on the rise, all around the world. As companies respond to rate hikes, an economic slowdown, and a massive funding crunch across the globe, layoffs are only expected to grow.
Starting with the layoffs by tech giants like Meta and Amazon, the vicious cycle of unemployment has begun.
Edtech Leads in Firing
In India, the layoffs have predominantly been in the startup space. There was an enormous ramp-up in these huge tech companies during the pandemic, and they went through an aggressive phase of funding and hiring. Obviously, it did not pan out as expected.
This has been especially true for ed-tech startups. Of the top 10 companies laying people off, 5 are edtech startups. Together, Byju’s, Unacademy, Vedantu, Toppr and WhiteHar Jr have laid off 5,374 people, which is 45% of the total layoffs in India in 2022.
Companies from other sectors are facing the heat as well. Ola, Cars24 and Zomato have been hitting the headlines quite a bit lately.
With the current state of the economy, investors are less willing to commit money. Hence, despite having a lot of dry powder, VCs are not drawing down on it. Generally when valuations fall VCs flock to get value for their buck.
Very little deployment of capital and high levels of dry powder only signal that the worst is yet to come!