India’s startup ecosystem is witnessing a notable slowdown in layoffs in 2025, hinting at early signs of a cautious recovery after a two-year slump. According to data from layoffs.fyi, a website that tracks global tech job cuts, seven Indian startups have laid off 1,602 employees so far this year—fewer than the 3,355 employees let go by 20 companies during the same period in 2024.
The decline in both the number of companies conducting layoffs and the total number of affected employees suggests improved financial discipline and a stabilising funding environment. While the sector remains far from the aggressive hiring seen during the 2021 funding boom, startups appear to be moving away from the mass layoffs that dominated headlines two years ago.
Funding data from the first quarter of 2025 further supports signs of stabilisation. According to Tracxn, India’s tech startups raised $2.5 billion in Q1—up 13% from the previous quarter and 8.7% higher than the same period last year. India now ranks third globally in terms of startup funding, trailing only the US and the UK.
Among this year’s layoffs, Ola Electric Mobility reportedly let go of around 1,000 employees and contract workers over two months, while Gupshup laid off 200 employees and Cars24 also reduced headcount by about 200. In January, Pocket FM dismissed 75 employees in a bid to cut costs and accelerate profitability. ShareChat laid off 27 employees—less than 5% of its workforce—as part of its annual appraisal cycle.
In contrast, 2024 saw 44 Indian startups lay off over 9,000 employees across sectors, as a subdued funding landscape pushed companies to prioritise profitability over scale. Major players including Byju’s, Paytm, Ola Electric, Flipkart, and Swiggy undertook wide-scale layoffs during that period.
The reduced pace of layoffs in India mirrors a similar trend in the global tech industry. So far in 2025, 112 companies worldwide have laid off just over 51,000 employees—down from nearly 79,700 during the same period last year.
Source – https://www.financialexpress.com/business/start-ups/startup-layoffs-on-the-decline-in-2025/3826806/