The start of the funding winter around 2022 brought a big shift in the Indian startup ecosystem – startups started focussing on profitability and cutting down their losses as against their earlier approach of growth at all costs. Despite the funding winter almost ending and funds infusion in startups stabilising over the last few quarters, it seems this focus on profitability is here to stay.

Founders continue to strive for leaner and efficient operations. What has helped this cause is the rise in the usage of generative artificial intelligence (AI) over the last few years. Startups are leveraging AI to streamline operations, automate manual tasks, and bring down costs.

Caught in the crossfire of this automation blitzkrieg are employees, who are being handed out pink slips in droves by startups. As per Inc42 data, about 3,600 startup employees have lost their jobs in 2025 so far.

Be it conversational AI unicorn Gupshup firing 500 employees or VerSe Innovation axing 350 jobs amid a funding crunch or even Ola Electric firing 1,000 employees due to automation of some of its front-end operations, the once-cushy jobs at Indian startups suddenly seem to have lost their sheen and security.

Besides, the losses of Indian startups have also played a role in the layoffs this year. Of the 112 startups that have released their financial statements for FY24 so far, 67 startups were loss-making entities and posted a cumulative loss of INR 21,472 Cr during the fiscal.

As the details below show, most of the startups which have fired employees in 2025 are in the red. While it remains to be seen whether the layoffs pay off in the long run for Indian startups, the mass retrenchments have surely caused financial and mental distress for the employees.

That said, we, at Inc42, have once again decided to compile a comprehensive list of Indian startups that have undertaken mass layoffs this year. Read on to know more.

If you’d like to report layoffs, pay cuts, or other developments at a startup, please write to us at editor@inc42.com.

https://inc42.com/buzz/otipy-shuts-operations-amid-cash-crunch/

https://inc42.com/buzz/zepto-cafe-halts-operations-in-multiple-cities/

https://inc42.com/buzz/josh-dailyhunt-parent-verse-innovation-lays-off-350-employees/

https://entrackr.com/exclusive/exclusive-z47-backed-genwise-lays-off-20-of-workforce-9036952

https://inc42.com/buzz/b2b-healthcare-startup-zoplar-shuts-operations/

https://inc42.com/buzz/cars24-lays-off-200-staff-in-restructuring-exercise/

https://inc42.com/buzz/elevation-capital-backed-zopper-fires-100-employees/

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