After few tough years of layoffs as well as some severe funding challenges the Indian startups seem to embrace a strong comeback. The slot w hiring scene is now picking up pace and staffing experts predict an increase of up to 30% increase in recruitment in 2025.
Layoffs in the sector have been a harsh reality and recent data reveals that the numbers are improving. Job cuts fell by nearly half in 2024 compared to the previous year. The drop coincides with a recovery in funding and it is learned that $10.9 billion has already been raised in 2024, which is up by 14% from the previous year.
Certain industries are leading the hiring revival. Sectors like e-commerce, fintech, travel and hospitality are expected to be at the forefront. It is creating opportunities for both young professionals and seasoned experts. Industries like BFSI and healthcare might take longer to bounce back, but the uneven recovery highlights different ways that startups are navigating the post-“funding winter” period.
The funding challenges of recent years forced startups to cut costs and downsize. Companies are now using fresh investments to restructure teams and focus on efficiency. A single funding round can translate into dozens of new hires.
However, big names like Paytm and Byju’s still had to lay off thousands of employees this year and this shows that challenges remain. The demand for talent is not as high as it once was during the startup boom. Experts believe that this is just a matter of time and hiring demand could surpass pre-crisis levels by mid-2025.
Startups are also learning from their mistakes. They are investing in better employee engagement and retention strategies to keep talent from leaving. Salaries are likely to go up by 5-7% and this should attract skilled workers.
