The Indian corporate landscape is witnessing a troubling surge in layoffs, with companies increasingly resorting to mass sackings as a strategy to restore financial health. This trend has been exacerbated by economic challenges and global disruptions, leading firms to adopt euphemisms like “rightsizing,” “restructuring,” or “workforce optimization” to mask the harsh reality of job losses. Notable examples include companies like Ola Electric and Byju’s, which have made headlines for significant workforce reductions, often leaving employees in shock and uncertainty.
The COVID-19 pandemic has further normalized the acceptance of layoffs as a legitimate business tool. Many employees learn about their terminations through abrupt email access revocations, underscoring a disturbing trend where junior staff are made to feel responsible for the financial woes of their companies, despite having little to do with the strategic decisions that led to such outcomes. The corporate hierarchy in India is starkly defined, with a small group of executives making critical decisions about products, pricing, and market strategies, while the vast majority of employees—those who execute these strategies—are left vulnerable when things go awry.
What is particularly concerning is the glaring lack of accountability at the top. While junior employees are quickly shown the door, senior executives rarely face consequences for their poor decision-making. This disparity is exacerbated by the weakening of labor movements in India, where union membership has dwindled to less than 10% of the formal workforce. Without strong representation, employees find themselves without a voice to challenge the status quo or question the rationale behind mass layoffs.
Moreover, many employees are aware of the underlying issues within their organizations—whether it’s flawed product strategies or excessive marketing costs—but fear speaking out. The culture of silence is pervasive, as those who dare to voice concerns risk their positions, while those in power often choose to ignore the realities on the ground.
The Indian corporate environment is littered with examples of this troubling dynamic. Scandals involving major financial institutions have shown that junior staff often knew about the brewing crises long before they erupted, yet they remained silent, adhering to the unspoken rule of keeping their heads down and following orders.
In conclusion, the current state of layoffs in India reflects a broader issue of accountability within corporate structures. While employees at the bottom face the harsh consequences of decisions made by a select few at the top, the lack of repercussions for those in leadership positions raises serious questions about the fairness and sustainability of such practices. It’s high time we address this imbalance and advocate for a corporate culture that values accountability at all levels, ensuring that the burden of corporate failures does not disproportionately fall on those who had no part in the decision-making process.
