Layoffs Continue Across Tech Industry
Hiring Down 35-40% From 2021-22 Highs
Startups and Venture-Backed Companies Face Funding Challenges
Despite being darlings of the post-2020 pandemic era tech companies and startups are facing a cash crunch. Hiring is still down by 35-40 from the 2021-22 highs data showed. Following significant workforce reductions in 2022 and 2023 this year has already seen 60,000 job cuts. Startups are once again considering layoffs as a way to control cash consumption and attract new investors.
As startups fail to secure additional funding they must look internally to cut costs. Many are turning to layoffs as a way to reduce expenses and extend their runway. This trend is likely to continue as the funding environment remains challenging and the economy slows down.
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