After two turbulent years of job cuts and funding freezes, India’s startup ecosystem is beginning to breathe easier. In the first quarter of 2025, startup layoffs have drastically reduced, down by more than half compared to the same period last year. The tide is slowly turning as funding rebounds and companies refocus on sustainable growth over reckless scaling.
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 decrease in the number of companies laying off employees and the overall number of affected workers indicates better financial management and a stabilising funding environment.
While mass hiring hasn’t returned, the shift suggests startups are learning from past mistakes, building leaner teams, prioritising profitability, and stepping back from the ‘growth at all costs’ mindset that led to earlier cuts.
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 also remains a global startup hotspot, now ranking 3rd worldwide in funding after the U.S. and the U.K.
Startups which Laid Off This Year
- Ola Electric Mobility - 1,000
- Cars24 – 200
- Gupshup – 200
- ShareChat – 27
Still, the optimism is measured. Leaders remain wary of overextending, but the worst may finally be behind.
The decrease in layoffs in India mirrors a global trend in the tech industry. In 2025 so far, 112 companies worldwide have terminated just over 51,000 employees, down from nearly 79,700 during the same time last year.
