![[Week 1] India’s Startup Job Scene Takes a Breather, but Hope Flickers on the Horizon](https://techscoopindia.com/wp-content/uploads/2025/07/JOBS.png "[Week 1] India’s Startup Job Scene Takes a Breather, but Hope Flickers on the Horizon")
India’s startup and tech ecosystem, often hyped as the pulsating heart of the nation’s innovation, hit a speed bump last week, with the latest jobs report painting a mixed picture of cautious recovery and lingering challenges. From Bengaluru’s unicorn factories to Mumbai’s fintech hubs, the tech job market is showing signs of life after a brutal funding winter, but it’s not all smooth sailing. Here’s the lowdown on last week’s jobs report, served with a side of insight and a sprinkle of Tech Scoop India flair.
A Glimmer of Hiring Optimism
According to a report from The Economic Times (July 8, 2025), Indian startups and tech firms are tiptoeing back into hiring mode, with an estimated 80,000 new tech jobs projected for FY26. This comes as a welcome shift after years of layoffs triggered by the funding drought that began in 2022. The report, citing data from staffing firm Xpheno, highlights that startups are focusing on leaner, high-skill roles, particularly in AI, machine learning, and cybersecurity. Bengaluru remains the epicenter, with 60% of these new jobs expected to sprout in Karnataka’s tech hub.
But don’t pop the champagne just yet. The hiring surge is cautious, with companies prioritizing efficiency over headcount. “Startups are done with the ‘growth at all costs’ mantra,” said Kamal Karanth, co-founder of Xpheno. “They’re hiring strategically—think AI engineers, not armies of junior devs.” This selective approach reflects a broader trend: tech firms are leveraging automation and generative AI to streamline operations, which means fewer but more specialized roles.
Layoffs Still Linger
While hiring is picking up, the shadow of layoffs hasn’t fully lifted. Inc42’s Layoff Tracker reported that over 3,600 startup employees lost their jobs in 2025 so far, with last week alone seeing cuts at companies like Ola Electric, which axed 1,000 jobs to “realign” its workforce for AI-driven operations. VerSe Innovation, parent of Dailyhunt, also slashed 350 roles, citing automation and a push for profitability. These cuts, though smaller than the 24,000 layoffs across 100+ startups in 2023, signal that the industry is still pruning to survive.
The edtech sector, once a darling of the pandemic era, continues to bleed jobs. Unacademy, still licking its wounds from 2,000 layoffs since 2022, made headlines last week when its CEO, sporting a $400 Burberry T-shirt, announced no appraisals for remaining staff. The irony wasn’t lost on X, where users roasted the move, with one post quipping, “Prioritizing profits over people, one designer tee at a time.”
Funding Rebound Fuels Job Hope
The jobs report ties closely to funding trends. After a dismal 2023, where startup funding plummeted 72% to $7 billion, 2024 saw a recovery with $12 billion raised across 993 deals—a 20% uptick from the previous year. Bengaluru led the charge, minting six new unicorns like Krutrim and Ather Energy, and accounting for nearly all of Karnataka’s $3.7 billion in startup funding. This cash infusion is giving startups the confidence to hire again, particularly in high-growth sectors like deep tech, fintech, and e-commerce.
Early-stage investments are a bright spot, rising 10% year-on-year to $1.1 billion, showing investor faith in India’s next-gen startups. However, seed and late-stage funding dropped 18% and 32%, respectively, meaning only the strongest ventures are securing big checks. For job seekers, this translates to opportunities at well-funded startups but tougher competition for roles at riskier early-stage ventures.
The Gig Economy and AI’s Double-Edged Sword
The rise of AI isn’t just reshaping job roles—it’s transforming the gig economy. The report notes a surge in demand for skilled gig workers earning ₹85,000 to ₹150,000 monthly, with a 52% growth in this cohort last year. Startups are tapping freelancers for specialized tasks like data annotation and AI model testing, offering flexibility but little job security. “The gig economy is a lifeline for startups cutting costs, but it’s a precarious deal for workers,” notes Saubhik Bhattacharya of the All India IT and ITeS Employees’ Union.
On the flip side, AI-driven layoffs are hitting hard. Companies like Zepto Cafe, which paused operations in 44 smaller cities last week, are automating front-end tasks to slash costs. This trend underscores a harsh reality: while tech creates jobs, it’s also displacing them, leaving many techies scrambling to upskill.
Public Sentiment: Scorn and Solidarity
The jobs report sparked a lively debate on X, where users vented frustration with startup culture’s volatility. “Startups hire like crazy during booms, then fire without remorse,” one user posted, echoing widespread disdain for the industry’s feast-or-famine approach. Others, however, see a silver lining, with posts praising startups for pivoting to sustainable models. “Leaner teams, smarter tech—this is how India’s startups will outlast the West,” one optimistic tweet declared.
The report also reignited criticism of startup founders’ priorities. The Unacademy CEO’s fashion faux pas fueled memes, with users calling out the disconnect between lavish leadership and squeezed employees. Yet, some defend the cuts, arguing that profitability is the only path to long-term job creation. “No profits, no jobs—simple math,” one X user quipped.
What’s Next for India’s Tech Job Market?
Last week’s jobs report paints a cautiously optimistic picture: hiring is rebounding, but startups are playing it safe, favoring AI-savvy talent and gig workers over bloated payrolls. With over 15.5 lakh direct jobs created by startups in recent years, the ecosystem remains a powerhouse for employment, especially for India’s tech-savvy youth. But challenges loom—funding volatility, automation, and regulatory hurdles like those faced by Paytm earlier this year could dampen growth.
For job seekers, the message is clear: upskill or get left behind. Roles in AI, cloud computing, and cybersecurity are hot, with companies like Zomato and Swiggy posting openings for senior engineers last week. Meanwhile, government initiatives like Startup India, which recognized 1.17 lakh startups creating over 12 lakh jobs by 2023, continue to bolster the ecosystem with funding and policy support.
The Bottom Line
India’s startup and tech job market is at a crossroads. Last week’s report shows a sector clawing its way back from the funding winter, with 80,000 new jobs on the horizon and funding stabilizing. But layoffs, driven by AI and cost-cutting, remind us that stability is fleeting. For every coder landing a gig at a shiny new unicorn, another is hustling in the gig economy or reskilling to stay relevant. As India’s startups navigate this high-stakes game, one thing’s certain: the hustle never stops, and neither does the drama.
