MC Tech3 | Indian startups slash 6,000 jobs in 2023; How Indian IT cos are embracing generative AI; and more

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In today’s newsletter:

• ?Indian startups slash 6,000 jobs in 2023
• ?How Indian IT cos are embracing generative AI
• ?IAMAI faces backlash for 'pro-Big Tech' stance

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Indian startups slash 6,000 jobs in 2023

Summer in India may be in full swing already, but the startup community in the country is still feeling the icy grip of the funding winter.?

Unfortunately, this has had a ripple effect on the employees who were hired by these startups during the pandemic when salaries were sky-high.

Tell me more: The first four months of 2023 have seen Indian startups lay off nearly 6,000 employees, as they grapple with uncertainty about the next funding round.

More importantly, 41 startups have resorted to downsizing this year, which is nearly five times higher than the same period last year, when only eight startups had to let go of their employees.

“Founders, who earlier had the mindset, ‘If we need capital, give me 3-6 months, we will get it,’ know they cannot rely on that anymore,” Scaler co-founder Abhimanyu Saxena told us.

Also Read | Life after layoffs: How people are coping after losing jobs in Indian startups

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Stunted growth

As startups resort to downsizing, they are also taking measures such as reevaluating their burn rate, pivoting from their current business model, and diversifying revenue streams in an attempt to appear more attractive for funding.?

• ?Now, many startups are focused on achieving positive unit economics and profitability, which used to be concerns for the future, just a year ago.

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