It would seem that by the end of 2022 and the early 2023 there have been many global upheavals in the startup and conglomerate industry. Termination of employees in the name of productivity and efficiency seems to be the unchecked phenomenon that would guide the industrial recession and unemployment in the year 2023.
OLX at the forefront of mass termination
OLX is preparing for a global check of it’s employees, 800 to be exact. Shortly following it’s deactivation of OLX Autos and automobile sale platform came this decision of mass termination.
Although the reason put forward is the restructuring of the company, it was already estimated that by 2023 1,500 of the employees might have to resign. It came as a shocking blow to the industry. It was also reported that OLX Autos show a growth increase of about 15%.
OLX and OLX Autos both which have a significant presence in India will continue to serve across many countries. According to Process, the parent company to OLX, it has about 11,375 employees across the globe.
Reduction in employees, Uber
Uber, a prime taxi service, has decided to resign almost 200 employees from the recruitment division. Uber has given an appeaser explanation given that the termination was part of an infrastructural move on reducing cost. The company was focusing on increasing profit and retaining the human resources employed in it. With 32,700 employees on a global scale, the decision will only affect a measly 1%. 150 employees of the resource management section resigned earlier this year. In the mid half of 2020 Uber had already resigned 17% of it’s employee scale.
Fear mongering Anaplan
The US based tech giant Anaplan has been resigning their employees on a mass scale. In the first phase about 119 employees of the San Francisco branch are to be terminated. Included in this dismissal are software engineers, copywriters , and security analysts. The decision will affect about 500 employees in both the USA and UK. In 2020 the security equity company bought Anaplan for $10.4 billion dollars.
Mass employee termination in Chinkari app
The Indian version of Tik-tok , Chinkari app developed under high expectations is facing mass employee termination. An estimated 20% of the employees are set to face termination as competition rises as both Snapchat and Instagram has been becoming more and more popular. It was believed that the banning of Tik-tok would enable Chinkari to prosper but owing to poor execution the reaction received was subpar. The explanation given is that the company is under financial crisis. Available in 2018 in the play store, it was praised and seen as a replacement to Tik-tok by Adithya Kothari, Bishwathma Naik, Deepak Salvi, Khosh. Although available in multiple countries it fid not receive the same level of acceptance.
Pillow to stop startup production
The crypto investment startup backed by Axel, Pillow is set to end development by the end of July. The company has informed it’s users of the ceasing of it’s services.
Even though after amassing about 18 million dollars in the Series A round it could only last till July 31. Arindam Roy (CEO), Rajath K M, Karthik Mishra founded Pillow in 2021.
India amidst the termination of startups
By reasoning of increasing profit and restructuring about 54 institutions in India has relieved 8,328 of it’s jobs. By the first four months of 2023 the startups had terminated 6,000 jobs.
As the 2022 recession hit about 102 Indian startups resigned 27,103 employees
Among the seven edtech unicorns, five of them along with other edtech startups resigned 9,871 of the employees. An example of this is BYJU’s app internal conflicts following which three of it’s directors resigned.
June 21 saw the resignation of the company’s auditor Deloitte Haskins, following which three of the startup board members also resigned. Peak XV’s partners GV Shankar, Chan Zukerburg, and Initiative’s Vivian Wu, Process’s Russel Dresenstock withdrew from their respective boards.
