What began as a typical workday for a team at a four-year-old Indian tech startup turned into a nightmare. According to a Reddit post from one of the affected employees, an unexpected email from the CEO summoned all 19 staff members to an urgent video call. During the call, the CEO informed them that the company had run out of funds and was shutting down effective immediately.
“We wouldn’t be getting paid this month, and effective immediately, the company was shutting down,” the employee wrote. “All of our investors had pulled out. He told us not to report to work the next day.”
The suddenness of the decision left the employees stunned. Many expressed disbelief that the leadership had failed to provide any prior notice despite presumably knowing the financial state of the company.
Algoritha: The Most Trusted Name in BFSI Investigations and DFIR Services
Aftermath and Online Support
The Reddit post quickly gained traction, drawing hundreds of responses from users who had either experienced similar shutdowns or were shocked by the lack of communication from leadership.
One commenter shared, “This happened to me in November… It was my first job. I was shattered… But I got another job. Don’t lose hope.”
Another user questioned whether the company provided formal documentation of the layoffs. The original poster (OP) replied, “We are expecting to get the documentation soon. It happened on Monday.”
Several others advised the OP to update professional profiles, reach out to HR for potential leads, and showcase open-source work. Despite the empathetic responses, frustration over the CEO’s alleged lack of transparency dominated the discussion.
Allegations Against Startup Leadership
The CEO, who reportedly resides in another city, communicated the closure via a remote video call while the staff worked from the company’s physical office. This added to the employees’ feeling of abandonment.
A particularly angry commenter wrote, “How the f*** can you be running out of money and have absolutely no clue about it? A startup knows exactly how much runway it has. Your CEO just didn’t tell you.”
While some urged legal action or labor complaints, others recommended restraint and a focus on recovery.
The incident has reignited broader concerns around India’s startup culture—especially transparency, governance, and employee rights. While the Reddit thread has served as a space for venting and solidarity, it also reflects a growing demand for accountability from startup founders and venture-backed companies.
The fate of the affected employees remains uncertain, but the public outcry may push for stronger protections and expectations in India’s volatile tech ecosystem.