Startup layoffs moderate; funding remains tight

AFTER THREE BRUISING years of funding slowdown and aggressive cost-cutting, the country's startup ecosystem is beginning to show early signs of labour market stabilisation, with layoffs easing both in scale and frequency in 2025.

- AYANTI BERA

Data from layoffs.fyi, which tracks global technology job cuts, show that 33 domestic startups have laid off 6,995 employees so far this year. This marks a sharp improvement from the same period in 2024, when 44 startups cut 9,195 jobs. In percentage terms, the number of firms resorting to layoffs has fallen by 25%, while total job losses are down nearly 24% year-on-year. The moderation suggests that startups are moving past headcount ratio-nalisation and adopting a more measured approach to growth.