A new report shows that over 4,500 people have lost their jobs in the Indian startup sector in the last eight months. Difficulty in getting funding, intense pressure from investors to make profits, and new regulatory restrictions are the main reasons for these mass layoffs. Startups are now prioritizing financial discipline and profitability over rapid growth, forcing them to cut back on new hires and cut costs.

Unexpected measures such as the ban on online real money gaming have added to the employment crisis. This has led to the closure of several companies in the sector and sudden job losses. In the current situation, leading companies such as Zepto, Zupee, Porter, and Krithrim have all significantly reduced their headcount as part of financial discipline.

Apart from financial difficulties, the increased use of artificial intelligence (AI) has also led to job losses. Many companies are now trying to operate more efficiently with fewer employees with the help of AI technology. For example, home decor platform Livspace has laid off about 1,000 people as part of its AI-driven transformation. Experts in the field indicate that large-scale new hiring is unlikely in the near future.