Tech Layoffs Now Bottoming?

This week enterprise productivity startup Miro announced firmwide layoff of more than 15%, or 275 people. As well, blockchain developer Consensys and publicly-traded file-sharing company Dropbox both cut their workforces by 20%

Zooming out to the entire tech ecosystem, and it’s a very different picture - tech layoffs are at a 2-year low

• According to Oct. data from Layoffs.fyi, just over 3,000 employees at 33 tech companies were affected by layoffs, compared to over 8,000 employees laid off in October 2022

• Tech layoffs consistently declined since the peak in Q1 2023, with 123 tech companies having layoffs in Q3, a 45% decline from the same period last year

• The decline is attributed to startups effectively cutting down headcount since the market reset in mid-2022, with venture investors advising companies to reduce expenses and establish a path to profitability

• Worst Impact: SaaS and Fintech as they incurred extremely aggressive valuations at the height of the bull market, and since have been forced to make significant cuts

• Start Up Upsides: Nasdaq is up 23% since the start of 2024, and the AI boom bringing venture investors back to the fundraising table

• AI based fundraising talks have become more competitive on price - venture funds such as a16z, General Catalyst, and Thrive Capital now have massive war chests to deploy into new startups

• As well, some venture firms are now advising founders to be more aggressive and take advantage of the improving market conditions

Read more here: https://pitchbook.com/news/articles/miro-dropbox-downsize-but-tech-layoffs-are-at-2-year-low