Introduction:
Layoffs are an unfortunate reality in today’s dynamic economy. Driven by various factors—economic downturns, technological advancements, industry-specific challenges, or a combination thereof—they significantly impact affected employees, creating uncertainty about their professional futures. India’s startup ecosystem, IT sector, and even established industries have experienced recent waves of layoffs, making proactive career management crucial.
According to Intellizence, over 5,700 companies announced mass layoffs since January 1, 2024, and more than 190 companies have announced mass layoffs worldwide since January 1, 2025. While 2024 saw a relative calming compared to the layoff surge of the previous three years (a 42% decline from 2020), over 1,200 companies and 260,000+ tech employees were still affected. This guide provides actionable, research-backed strategies to help you navigate potential layoffs in the Indian job market.
Layoffs in India: A Closer Look
While India’s job market can be robust, it’s not immune to global economic fluctuations. Job losses resulting from economic downturns, restructuring, or technological disruption have significant consequences. However, with careful planning and a resilient mindset, individuals can navigate these challenges and emerge stronger.
The past decade has witnessed significant shifts in India’s job market. 2024 saw continued layoffs, particularly in the technology and startup sectors. By August, over 8,000 employees had been laid off, with IT startups and cost-cutting companies bearing the brunt. Notable examples include Paytm (3,500 layoffs in June), Byju’s, Ola, and Swiggy. Even conglomerates like Reliance Industries reportedly considered workforce reductions.
Globally, tech layoffs surpassed 130,000, with companies like Google, Amazon, and Tesla making cuts due to economic pressures and restructuring. In India, these layoffs followed a slowdown in tech hiring, with an 8% year-on-year decline in the white-collar job market. The edtech sector also experienced retrenchment after the pandemic-driven boom. These trends are exacerbated by global inflation, rising interest rates, and geopolitical instability, highlighting the need for career resilience.
Actionable Steps to Protect Your Career:
- Embrace Continuous Learning and Upskilling: In today’s rapidly evolving world, skills become obsolete quickly. Prioritize continuous learning and supplement it with targeted upskilling in high-demand fields like data science, AI, and digital marketing. LinkedIn’s 2023 Workplace Learning Report indicates that professionals with a continuous learning trajectory are 40 times more likely to be hired after a layoff.
- Build and Maintain a Strong Network: Networking is invaluable. Actively participate in industry events, leverage job search websites and online platforms, and reconnect with former colleagues, industry contacts, and mentors.
- Establish a Financial Safety Net: A robust financial cushion is crucial. Aim to have 6-12 months of living expenses saved in an emergency fund. Diversify investments and reduce non-essential spending to enhance financial stability.
- Utilize Government Resources: Explore government initiatives like the National Career Service (NCS) and PMGDISHA, which offer job search assistance, skill-building training, and job market navigation resources.
What to Do If You’re Laid Off:
- Stay Calm and Understand Your Rights: Review your employment contract for severance details, notice periods, and other entitlements under Indian labour laws.
- Document Everything: Keep records of all communications with your employer, including performance reviews, emails, and relevant documents.
- Leverage Your Support Network: Seek emotional and practical support from family, friends, mentors, and career counsellors. Inform your professional network about your job search.
- Prioritize Mental Health: Layoffs can be emotionally challenging. Practice stress management techniques, seek support from loved ones, and maintain a positive mindset.
The Role of Employers:
Employers play a vital role in supporting employees during times of adversity. Transparent communication, upskilling opportunities, and fair severance packages can significantly ease the burden on affected employees.
Conclusion:
By taking proactive steps, individuals can enhance their career resilience and navigate the challenges of potential layoffs. Continuous learning, strong networks, financial preparedness, and utilizing available resources are crucial for success in today’s dynamic job market.