Startup founders logic behind layoffs

Link: https://inc42.com/buzz/unacademy-fires-another-250-employees-to-turn-profitable/

I have been through ups and downs in IT, but these layoffs seem crazy. There is just no pattern to it, more like everyone is firing let me fire. Honestly I feel its high time Tech companies, Startups take a hard look at their business and revenue model. Most just seem to be in a herd mentality. Every one is mass hiring, let me also mass hire. Every one is giving exorbitant salaries, let me also give. Its become more a cycle now, hire in large numbers, find there is no work to give, no revenue to sustain, and so mass fire again. This just cant be going on. Who makes mistakes that results in revenue loss or crunch? Top management Who gets fired ? Every one except the ones who are responsible. Dont fucking give me the reasoning that you are doing this for efficiency and streamlining. No you are just doing it to protect your own arse, while making scapegoats of others. So the Musks, Pichais, Zuckerbergs happily take fat bonuses, while drafting teary regret letters for firing. And they are supposed to be our role models to look up to? Enough is enough IT industry can't forever be running in this same mode. These hire and fire cycles are getting weary nowadays.

I don't know why everyone is making a big deal out of layoffs. Even the ones who laid off are not that concerned than the ones who comment. Laid off employees literally get free money upwards of 10 lakhs in many cases of senior developers who are laid off from top tech startups. Companies pay severance equal to 3-6 months salary of laid off employees. Some even offer other benefits as well. I personally know a couple of Devs who got around ~9-10L in severance pay. So, yeah if there are layoffs happening in funded tech startups or leading tech companies, considering their pay range, laid off employees get handsome severance pay including employee benefits

Tell your story and how you felt after seeing that mail or listening about the news. Indian startups should chase profitability instead of playing bigger fool game theory.

In your experience, what are some early signs that help detect incoming layoffs at a startup? It could be company-wide, team specific or in a particular function only.

Being an investor in equity markets, i was aware of the fact that US market will crash as the free money by fed draws back. I obviously was not able to link this up with the funding dry-ness. I still expect a founder to be aware of these economic events. I am curious how could the management decide to go for hiring employees only to lay them off a year later. If you are a founder, would be happy to know the other side of the story.

Dunzo Taskmo Frontrow