top of page

Are you going to be the next employee to get laid off in your company?

Are you going to be the next to get laid off in your #startup company?

As one start up founder said "winter is not coming".

He said "winter is already here".

How do you know whether you are going to be laid off next?

In the last few weeks over 8000 people have lost jobs. Media reports are saying another 5000 may be asked to go.

A lot of them are in edtech. Most of them are startups and #unicorns or were on way to becoming one.

#lido Learning 1200 employees laid off. #unacademy 800. MFine - 50% of its staff. #Meesho 150. #cars24 600 laid off.

Most of those laid off were in sales and junior or contract jobs.

Why is it happening?

Partly global factors - commodity inflation, oil price hikes, Ukraine war, tech is the US slowing down, #netflix results, growth slowing down, etc.

Partly because of their own business models.

Most of these companies had raised millions of dollars in funding rounds. Then why this issue?

Most startups are loss making. So how do the losses get funded? With equity. Money in the bank means a longer "runway".

Money saved means a "longer runway". Therefore survival.

Not necessarily.

Runway means how many months to go before your money runs out and your company dies?

This happens when you have no real business model which generates profits.

Losses are still ok if your core business is profitable and growth investments are being made.

In many companies, losses have actually been increasing.

If your only business model was to run bigger and bigger loss making companies, that party had to end sooner or later.

As all listed startups are now discovering. #paytm#zomato

Philip Kotler said a long time back - marketing is satisfying customer needs at a profit.

Key word - "at a profit".

Brings us to the point where you ask - is your company default dead or default alive?

#ycombinator says default dead means the money will run out before the company turns profitable.

How do you know if you are next to get fired?

Are your department's budgets being cut?

Is your company's marketing budget being cut?

Is there a freeze on recruitment?

Are your targets becoming insanely high and unrealistic?

Are your seniors behaving differently with you suddenly?

Is the company culture becoming more toxic?

Are you in edtech sales?

Are you on contract or recently hired? Its LIFO here - last in first out. Most recent recruits get fired first.

What can you do?

1. Scale down your lifestyle immediately. Cut all discretionary expenses. Spend less on mobiles, movies, bikes, home interiors, mobile accessories, laptops, amazon, flipkart, travel.

2. Reduce eating out. Start cooking at home. Especially if you are a young couple.

2. Prepay your loans partially. Bring down the #emi. Do not reduce the loan tenure.

3. Start #upskilling yourself. Start reaching out to placement consultants now.

30 views0 comments


Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page