Indian Startups Lay Off Over 4,500 Employees Amid Regulatory and AI-Driven Changes

Indian startups have laid off over 4,500 employees since July last year, driven by factors including regulatory disruptions like the ban on online real-money gaming, tighter capital flows, and investor pressure to focus on profitability. Many startups are adopting AI-driven models and leaner team structures, exemplified by Livspace's recent layoffs linked to automation efforts. Industry experts note that while AI influences workforce changes, broader financial and regulatory challenges are key drivers behind these layoffs.