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At a time when it is becoming increasingly difficult to raise capital, the startup space is facing challenges, with the cash crunch starting to affect employees. Highlighting one such incident, The Economic Times reported that after an employee suffered a heart attack and had to be hospitalised, the manager declared the suffering employee to be absconding from work.
At the same company, employees were asked to work despite deaths in the family and even if their parents were hospitalised.
After the worker mentioned earlier resigned to escape from the intense mental harassment at work, quoting the employee, the report said, “The company had overhired a couple of years ago when it was flush with funds, and now people are being given pink slips, without reference letters or help with outplacement. Everyone I know is looking for better options, but the market is really down. Some are jumping ship with big pay cuts.”
Elaborating on the dearth of funds resulting in job losses, the report said that employees at troubled startups are unable to take any more pressure. An increasingly toxic work culture with unachievable targets has also made survival difficult. Unhealthy work environments and a constant fear of job cuts have resulted in a situation where employees are desperately looking for a way out.
The newspaper spoke with several employees working at various startups that do not have access to funding and reported that amid pressure from investors, the management is doing everything to cut costs. People working at these firms have witnessed their colleagues being shown the door. Many have left on their own or are looking for options.
The ET report added that employees are facing problems in their personal lives as well. Their families are unable to keep up with the work hours. Several employees are openly looking for jobs and sporting #opentowork on their LinkedIn profiles, even though they have yet to leave their current job.
Writing about the discussion on the matter with a senior executive, the report quoted him as saying, “Employee morale is at an all-time low. It’s an open secret that almost everyone is looking out.”
First Published: Apr 04 2023 | 10:12 AM IST
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