The layoff saga that shook the Indian start-up sector last year continues in 2023 as New-Delhi based upGrad-backed Harappa has terminated 30 per cent of its 200-strong workforce. Nearly 60 employees have lost their jobs, Business Today (BT) reported.
As per reports, the company did not provide any official reasons behind the layoffs. The layoffs mostly took place in the content division.
A person aware of the development told BT that the team leaders were shared names of the people who were to let do and were asked to convey this disheartening news to their colleagues. He also added that this was the first phase, and the company was likely to add more names to the roster of people to be handed pink slips in the coming time.
Founded in 2018, Harappa was acquired by Ronnie Screwvala led upGrad in July 2022 for Rs 300 crore. According to an Entrackr report, it clocked Rs 4.41 crore as operating revenues in the financial year ( FY) 2021 from Rs 35 lakh in FY20, witnessing a whopping 12x jump.
The Indian start-up sector has witnessed a series of job cuts in 2022 with nearly 18,000 people losing their jobs in the tech industry. Edtech accounted for 44 per cent of terminations, with highly valued unicorns like Byju's, Vedantu and Unacademy firing employees to keep their businesses on the track to profitability.
Considering the uncertainties, Gaurav Munjal, the CEO of Unacademy, expressed his caution that 2023 would bring more difficulties than the previous year. The layoffs from Harappa have triggered a pertinent question, 'Is the tech sector heading towards the difficult days?'
2023 will be worse than 2022 for Tech. This is what I keep hearing.— Gaurav Munjal (@gauravmunjal) November 27, 2022
Update: We have removed the name of a senior executive reportedly laid off from the company after receiving an email from Harappa that the individual had voluntarily resigned.