Thousands of resumes are floating around, recruiters told ET.
“We haven’t seen this kind of influx of CVs for many years,” said Anuj Roy, managing partner at executive search firm Fidius Advisory. “They are coming in not just from edtech but also commerce and digital media startups.”
A 31-year-old employee at an edtech startup which has undergone multiple rounds of layoffs and been aggressively trying to reduce its cash burn, said that despite much talk about a turnaround, the situation at the firm has only been worsening.
Also read | Over 17,000 Indian startup employees laid off in the first half of 2023 as funding winter refuses to thaw
“We’re seeing cases where our colleagues are coming in to work in the morning, being told they’ve been let go in the afternoon, and packing up and leaving in the evening,” he said.
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Almost everyone in the company is looking out, he said. “The founders’ vision is not clear – confusion abounds about the way ahead. Even the HR team has washed its hands off this mess,” he said.Roy of Fidius Advisory said those seeking a job change are even okay with a lower salary. “They are not even negotiating hard on designations when they do move,” he said.
Compounding the problem is the fact that there are also far fewer jobs in the market now.
Ashish Sanganeria, senior partner at executive search firm Transearch, said that even at the CXO level, he’s getting 8-10 reachouts every week from edtech firms alone.
“Funding was raised at crazy valuations, which startups aren’t able to justify,” said Sanganeria. “Investors are putting the pressure on, and most often the first area to reduce burn is through job cuts.”
Resumes are coming in not just from those laid off but also those looking to flee a sinking ship.
Also, as several startups pivot their business model amid a growth slowdown, many employees want to distance themselves from the uncertainty.
At least three recruiters said they have seen a spike in resumes from employees of an ecommerce platform who are afraid that they will be asked to go if they resist relocation in line with the company’s plan to move its base to Delhi from Bengaluru.
“What is the guarantee that I’ll get to keep my job even if I relocate?” said one of its employees, requesting not to be named. He said he is looking out, but if need be, will take a sabbatical rather than move.
Abhay Pandey, general partner at A91 Partners, said the situation is not abnormal. “If you’re in an organisation that you know is struggling; you see reports of it; then you want to jump ship. These things happen.”
According to Pandey, startups overhired in 2021 and the beginning of 2022, after which capital shrank and people stopped seeing growth aspirations and started focusing on profit. “A lot of people became redundant. This will continue for some time till the new equilibrium is found. Then growth and hiring will start again,” he said.