Layoffs jeopardize job security; resumes flooding hiring platforms

Indian job sector is marred with the fear of layoffs because of cash crunch or increasing automation, which has resulted in a major rise in the number of resumes on hiring platforms.

Applications from people from IT and e-commerce industries have increased by 20-25%, as per Lohit Bhatia, business head, staffing solutions, IKYA Human Capital Solutions.

"It's happening at firms where the management is either reducing workforce or rationalising the headcount to balance demand and supply," Bhatia told ET.

Last year, there were about 9,200 employee layoffs, a lot more than about 5,500 in 2015, says research platform Xeler8. Major industries that saw these layoffs were food delivery, e-commerce and consumer services companies.

Also read: India's manufacturing sales shrink. Expect more layoffs

Snapdeal, the e-commerce major, is also firing employees because of cash crunch, as reported earlier.

While on one side job seekers are knocking on the doors of these platforms, employers are increasingly withdrawing. Online recruitment activity in e-commerce stumbled from 3% in December 2016 to a negative 3% in January 2017, says Monster. Month-on-month, there has been a 4% decline in hiring activity.

Also read: Telecom industry is going to witness massive layoffs; over 25,000 pink slips loom

A major change has come in the Indian IT sector because of automation, artificial intelligence and machine learning, and as a result, Indian techies are more and more worried about their jobs.

However, things are not as bad in the e-commerce space, with Flipkart planning to hire 20-30% more people in 2017 compared to 2016, and Paytm founder Viay Shekhar Sharma announcing vacancies in tech and product space.

(Image source: LinkedIn)