Tuesday, November 29, 2022
Outlook.com
Outlook India
Outlook Business
+

Artificial Intelligence-Backed Start-up 6sence Terminates 150 Employees Globally

Since March 2020, 1.25 lakh employees have been laid off by around 718 start-ups globally

Artificial Intelligence-Backed Start-up 6sence Terminates 150 Employees Globally
POSTED ON October 19, 2022 4:44 PM

The US-based artificial intelligence (AI) platform 6sense has laid off 10 per cent of its global workforce. Over the past few days, nearly 150 employees received termination letters, Moneycontrol reported.

It was reported that members from the company's content, design, editing, product, sales, marketing and engineering teams were handed the pink slip by their respective managers over a 15-minute zoom call.  

The employees were told that this decision was taken due to the ‘uncertain macroeconomic environment’. As a part of their severance package, the staffers were offered the option to encash their privileged leaves (PLs). 

Since March 2020, 1.25 lakh employees have been laid off by around 718 start-ups globally. According to data compiled by layoffs.fyi, a tracker that compiles information about unemployment globally, 43,399 start-up employees have been laid off across the world since April 1st 2022, of which over 13 per cent people were fired by Indian start-ups.

Over the past several months, brands like Byju’s, Ola and Unacademy have been in the news for laying off staff. The edtech space has seen a high number of layoffs as schools reopened and people preferred physical education over virtual learning.

Edtech unicorn Unacademy fired 1,150 people in two phases this year, while Vedantu fired 624 in May 2022. Byju's-owned Toppr and Whitehat Jr fired around 350 and 300 people respectively in June 2022.

Other sectors in the start-up space also witnessed layoffs. In May 2022, Bengaluru-based digital healthcare provider MFine fired 600 people, which was almost 75 per cent of its workforce. Pre-owned cars e-commerce platform Cars24, too, fired 600 people in May 2022. 

This unfortunate trend is becoming more pronounced amid the globaly funding winter across the start-up ecosystem, forcing many startups to drastically cut down their operating costs. Letting go of people is one of the fastest ways to achieve this cost reduction. 

  • Related Articles

    According to the TeamLease EdTech report, 23 per cent of e-commerce and technology start-ups were willing to hire freshers in July to December 2022 as compared to the same period last year

    Intent for hiring freshers in India Inc surges by 12 per cent

    In India, VC investment dropped more than 50 per cent—from $7.5 billion to $2.6 billion quarter-over-quarter

    VC investment in Asia falls for the third straight quarter in Q3’22, sinking to $21.7 billion

    Drivetrain will use funds to expand its strategic finance platform and accelerate its go-to-market operations

    Drivetrain Raises $15 million from Elevation Capital, Jungle Ventures and Venture Highway