Momentum has slowed down,” Sunil Goel, managing director of Global Hunts, said, according to the report.
In addition to employees staying put at more stable companies, startups have been laying off workers at an increased rate with Xeler8, the research platform, saying Indian startups fired 9,200 employees in 2016.
Snapdeal, the third largest online marketplace, grabbed headlines by announcing plans to lay off 1,000 or more employees, but there are others that are following suit including Craftsvilla; YepMe, the fashion website; and Tolexo, reported Forbes.
A lack of capital is partly to blame for the startups’ struggles, but K Sudarshan, managing partner for India at EMA Partners International, told Forbes it also has to do with the demonetization.
In 2017, the new GST regime is going to be another disrupter,” said Sudarshan.