Indian startups cut deep workforce, permanent employees cut by 61%: Razorpay

Indian startups go through steep employee discounts and the hiring of permanent employees has fallen by a whopping 61 percent in the past 12 months, a new report found Monday.



Hiring Chief Experience Officer (CXO) has declined by a whopping 1,300 percent since October 2021, according to .’s annual insights report RazorpayX Payroll‘s business banking platform Razorpay.

The changing dynamics of the startup ecosystem has led to massive shifts in hiring patterns over the past 12 months.

Despite lower hires, the total salary of existing full-time employees increased by 64.7 percent.

However, these rising salaries are not evenly distributed across genders, especially in the highest pay grade, the report said.

“The Indian startup ecosystem has faced headwinds in recent months, but they have been downright resilient and adaptive to such a dynamic environment. The data indicates that startups have optimized their workforce by building leaner but stronger teams, taking into account with the macro forces,” said Shashank Mehtavice president and head of RazorpayX.

With many startups going through the chills of winter funding, most of them are cutting back on their staff.

“While hiring has declined across departments, technology hiring appears to have been least affected. Technology-related jobs have managed to marginally increase their contribution to the total workforce by 4 percent, while the hiring trend is slowing overall.” according to the findings. showed.

While permanent hires have declined, gig workers seem to be favored by startups.

Payments to gig workers have increased by 153% since October 2021. The total number of companies that have switched to a semi-gig workforce model has increased by 15 percent.

Semi-skilled gig workers who get less than Rs 20,000 have the highest contribution of the entire pool of gig workers hired by startups, followed by those who earn anywhere between Rs 20,000-Rs 40,000, the report said.

“However, these workers are one of the slowest growing cohorts growing by 26 percent and 52 percent respectively. Skilled handymen earning between Rs 85,000 to more than Rs 150,000, although they contribute the least to the total pool, have the highest growth in the industry. last year,” the report said.

The report analyzed data from October 2021 to September 2022 from more than 25,000 employees in more than 1,000 Indian startups across 20 industries.

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