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Data shows who has been hit the hardest in the great tech layoff wave

 2 years ago
source link: https://finance.yahoo.com/news/data-shows-hit-hardest-great-181016093.html
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Data shows who has been hit the hardest in the great tech layoff wave

Natasha Mascarenhas
Sun, July 10, 2022, 3:10 AM·5 min read
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Welcome to Startups Weekly, a fresh human-first take on this week’s startup news and trends. To get this in your inbox, subscribe here.

As Q2 venture capital data starts to come out, it’s clear that there’s a difference between how the startup market is acting and how it actually feels. Sure, capital has slowed, but at least within the United States, the numbers aren’t as damning as expected.

The numbers — which I’d recommend you check out for yourselves — give a healthy dose of perspective during a tough time in tech. It’s a weird dissonance: Regardless of how much capital is out there, it’s clear that startups across all sectors and stages are still reacting to macroeconomic worries.

So, this week’s layoff column is going to be all about contextualizing that dissonance: We have fresh data, courtesy of Trueup, that gives us some color on who has been hit the hardest, both in terms of institutions and sectors, from the great tech layoff.

Trueup, a tech recruitment platform that tracks layoffs, claims that over 117 unicorns have announced layoffs since the start of 2022. Of that cohort, the sector with the most layoffs is fintech, followed by crypto and real estate.

Notable fintech layoffs in the recent weeks include Amount, which cut 18% of staff after landing a $1 billion valuation just one year prior, MainStreet, which cut 30% of staff weeks before pursuing a potential recapitalization, On Deck, which cut 25% and scaled back its accelerator program and Klarna, which cut 10% of its workforce before seeking funding at a lower valuation.

Layoffs aren’t foreign in the crypto world, either, as Coinbase and Gemini also laid off tech employees in response to the market.

As my colleague Mary Ann Azevedo reports, fintech’s recent fall comes in stark contrast to its busy 2021. It’s not entirely surprising that the same sector that saw massive venture capital gains is also conducting layoffs. Growth at all costs, we’re hearing from investors, comes at its own cost — especially if there’s a sudden pressure to shift to profitability and focus.


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