Worst Time for Start-Ups: Around 60k people to Turn Unemployed?

The deadly impact left by the Covid pandemic is not over yet. The scar it created is still haunting the economies of many nations. We are seeing how the opposition parties in India are targeting and lashing out at the Union government regarding the situation of the Indian economy.

Not just India, but many developed nations are facing the wrath of inflation as many startups that blossomed like mushrooms during the Covid outbreak are getting shut down rapidly. The start-ups are under the heat now.

A recent study shows that start-ups are hit hard by the showdown as the techies are losing their jobs at a bigger rate. The data says that more than 22,000 people who work as techies lost their jobs. Indian techies make up the lion's share of people who lost their jobs due to inflation.

As per the analysis of the experts, the start-ups are facing the heart as raising the funds has become a new concern and headache. This forced the owners to leave the employees resulting in the teachers losing their jobs and turning jobless.

The start-up sector is a bigger arena for people and entrepreneurs to pitch their ideas and implement the same. When the world came to a standstill with the Covid pandemic, the startups saw a massive rise with the entrepreneurs stepping in to offer services in various fields.

Now the world started to get back to normality and the companies and firms that stopped their functions had resumed their work giving a tough run to the start-ups.

This made the investors have second thought about making investments in the start-ups. This in turn resulted in the start-ups focusing on cost management and the restructuring process is triggering the rise in unemployment.

The start-up sector is also going in a problematic direction in India. The startups in various fields including online teaching are on a spree of removing employees. The worst is yet to come and the ongoing developments hint that around 60,000 employees might get fired this year. We are in July and there are six months left. Calculating the numbers, around 10,000 employees would turn unemployed every month.
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