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As Capital Flows Slow, Startups Begin Layoffs | India Business News

BENGALURU/CHENNAI: Is the job market moving from the `Great Resignation’ phase to a `Great Layoff’ phase? There are signs of this in the startup world, though not yet in the broader tech world. The US Fed’s interest rate increases have led to a pullback of global capital flows, impacting the liquidity of startups. That in turn is pushing many startups to cut costs by laying off employees. Going by news reports, a dozen prominent Indian startups have laid off nearly 6,000 people in the first five months of the calendar year.
Zomato-backed Blinkit is reported to have laid off 1,600 employees, edtech startups Unacademy and Vedantu have laid off 1,000 and 600 people respectively, Cars24 and Mfine have let go of 600 people each. Globally too, startups including Thrasio, OnDeck, Robinhood and Cameo have fired employees.

Krish Subramanian, co-founder & CEO of SaaS unicorn Chargebee, said that given the uncertain environment, it is…

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