'Layoffs Not Unusual, Ups & Downs Are In The DNA Of Tech & Startups' Says India's IT Minister Amid Layoff Wave

At a time when layoffs have hurt employees of Amazon, Meta, Twitter, Ford, Intel, Byju¡¯s, Zomato, Oyo, Swiggy, and many other companies, India's Information Technology Minister Rajeev Chandrasekhar said on Tuesday that it's a "clear understanding" that "ups and downs" are "in the very DNA" of the tech and startup space.

He said that while the government "probably cannot" intervene to stop layoffs in the IT sector, it is working to ensure these job losses are "soft landings"¡ªmeaning enough time to find new jobs.

"Enough Jobs For Talented People"

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The IT minister insisted that there are enough jobs for talented people ¡ª "in fact there is a deficit" ¡ª but also outlined a Rs 460-crore "reskilling" plan. The government is also asking startups to make their growth assumptions for the next year "more realistic", he added.

"Maybe there is an issue where there are people of a certain type of skill, [while] the demand is of a totally different type of skill," he said. "The government has spent and outlaid about Rs 460 crore to start a digital platform called 'FutureSkills Prime'... which will allow for youngsters within the industry to look for alternate skills... so they get the opportunities where the opportunities [are]," he further said, while speaking on the sidelines of the India Global Forum meet in Dubai, as per an NDTV report.

"If a startup has been built with a certain assumption of growth, it is clear that the current headwinds in the global economy are going to cause some corrections in that assumption. It is part of the DNA of being a startup," he said.

Also Read: Fired Women Employees Claim Musk's Layoffs Unfairly Targeted Them

Government Intervention?

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"Is it something that makes me happy to see people who are in a startup being laid off? Of course not. Is there is there a way that the government can intervene? Probably not," he continued.

"Because these (laid-off employees) are talented people, they will land on their feet and find their place somewhere else. But it is not something that is very unusual for startups. You see that in Amazon in the US. You see that in Twitter, you see that in many, many companies all around the world. So, it is not unusual," he added, as per the report.

2 Lakh People Lost Jobs In Tech Sector

Rajeev Chandrasekhar/Twitter

Estimates say, globally, nearly 2 lakh people have lost their jobs in the tech sector. Facebook and Twitter are among the global giants to have taken such steps, having laid off large numbers in their India offices, while India's homegrown ed-tech startup Byju's is also among the firms affected.

Asked pointedly if there was nothing the government could do, the IT minister said, "I have spoken about making sure that these are soft landings, but I don't want to name them because these are privileged conversations."

He mentioned, "I make sure that I speak to the founders. I speak to them and say, 'Look, you have an obligation to make sure that these departures are soft, that you give them enough time to find some job; you help them with the finding replacement'."

Praising Oyo's Extra Effort

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The IT minister cited the recent layoffs of about 600 employees at the IPO bound hotel booking platform Oyo. "They made an extra effort to try and place them. I would like them (companies) to do more... It is absolutely important that you don't think of Indian employees as, you know, people that you can just get rid of on a whim or fancy."

Also Read: Amazon CEO Says Mass Layoffs Will Extend Into 2023

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