Over 4,500 Employees Laid Off by Indian Startups Since July 2025: Report
New Delhi: More than 4,500 employees have been laid off by Indian startups since July last year, with the numbers of such sacked employees also going up owing to the sudden ban on online real-money gaming, which led to the closure of several startups overnight, data sourced from executive search firm Longhouse Consulting has revealed, reported Times of India.
The selective flow of capital into companies and investor pressure to turn profitable is also another factor responsible for the layoffs as many startups chose to work with smaller teams and focus only on filling up roles that are key to growth.
The TOI report added that by design, the latest approach is working with a less staff strength with firms increasingly betting on artificial intelligence (AI). Many founders are also building AI-first startups.
“Investors are now rewarding startups that can achieve significant milestones with optimised headcounts. By building lean, startups are not just reacting to tighter funding environment; they are de–risking their models against macroeconomic volatility. This lean by design approach allows for longer runways,” said Viswanath P.S., MD & CEO at Randstad India told the newspaper.
According to Anshuman Das, CEO and founder at Longhouse, even early stage are startups looking to raise growth funds need to show at least a path to profitability early in the game now.
“From the start, hence, they are designing the companies very differently. They are not doing big hiring in all functions but only adding incremental hires and senior hiring wherever it is a must. Much of the big money in 2024 and 2025 flowed into quick commerce. Sectors such as traditional SaaS are not attracting big money with the AI economy taking over,” said Das.
The data indicates that apart from real-money gaming startups, companies including Porter, Zepto, Krutrim and Zupee have also sacked people during the period, reported TOI.
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