Social commerce unicorn Meesho, has laid off 15 percent of its workforce, or 251 employees, in its third round of layoffs on May 5. The firing spree that began early last year has seen 90 Indian startups laying off more than 25,000 employees. As many as 6,000 people have been let go in the first four months of 2023. Besides Meesho, several unicorns have cut jobs, the largest of them coming in edtech, with BYJU's, Unacademy and others slashing jobs in their core businesses and at subsidiaries in multiple rounds.
Most companies have cited cost pressures, over-estimation of growth projections, an uncertain macro environment and a funding slowdown as few of the top reasons.
As the global economic environment continues to weigh on markets, startup founders are prioritising sustainable growth and positive unit economics. This has meant a slowdown in hiring and rising demand for gig workers.
A report by RazorpayX Payroll, the business banking platform of Razorpay, has shown that while hiring has seen a 36 percent decline in the last six months, demand for specialised gig workers has increased by 21 percent. Salaries to gig workers also saw a jump of 20.94 percent in the past six months, which includes highly skilled gig workers earning more than Rs 1.5 lakh per month
Razorpay analysed data from over 26,000 employees in more than 20 sectors from Oct 2022 to March 2023. Here are the top findings:
● Demand for skilled gig workers increases amid startup hiring woes:
Even as the overall rate of hiring has decreased by 36.45 percent in the past six months, the demand for gig workers earning more than Rs 1.5 lakh per month has increased by 21.38 percent. This indicates a higher demand for particularly skilled gig workers.
The data shows that the headcount of business departments has grown the most, by 28.24 percent, and followed by finance departments that witnessed a headcount growth of 20.18 percent.
Also Read: US industry chamber in India bats for social security for gig workers, ease of use for bike taxis
While hiring full-time employees across all departments has slowed down, sales and marketing teams have grown by 20.61 percent. On the other hand, the hiring of full-time CXOs and senior executives has declined the most (36.02 percent) during the period.
● Salaries continue to increase despite hiring slump:
Despite a dip in overall hiring, overall salary spends for full-time employees have increased by 23.07 percent. Similarly, within the gig workers' cohort, total salary payouts have risen by 20.94 percent.
The average salary for entry-level jobs has dipped by 13.36 percent, indicating a gradual decline in the CTC for freshers. Meanwhile, the average salary of CXOs has grown by 10.29 percent in the last six months.
● Automated reimbursements gain traction in hybrid work culture:
In the past six months, the number of reimbursements to employees has grown by 15.75 percent, reflecting an inclination towards a hybrid work culture. RazorpayX's Payroll platform has enabled over 2.5 Lakh reimbursements filing in the last six months, with a total amount of Rs 105 crore being claimed.
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