Big tech is eliminated, opportunities for startups

Tram Ho

Big tech đào thải, cơ hội cho khởi nghiệp - Ảnh 1.

Meta shocked to lay off 11,000 employees. In the photo: Meta’s headquarters in California (USA) – Photo: REUTERS

It wouldn’t be surprising if more layoffs happen over the next few months, especially at companies whose fiscal year ends on December 31.

Expert JP GOWNDER

According to Layoffs, which tracks data on layoffs in the tech industry, a total of 118,000 employees lost their jobs in 2022. With 24,355 people, the number of technology employees was laid off in just the first few days of November. -2022 has surpassed previous months in the same year.

Scaling down

“I miscalculated, and I accept responsibility for this,” billionaire Mark Zuckerberg, founder of Meta – Facebook’s parent company, admitted when announcing the decision to cut 11,000 employees last week.

Before Meta, billionaire Elon Musk’s decision to lay off half of his 7,500 Twitter employees sent shockwaves through the tech industry last week.

But not only these two big names, a series of big names in the world technology industry have been laying off their employees.

Wired also said that this is the month when big tech companies implement their downsizing plans. In addition to Twitter, Intel has reduced the number of employees by 20%. Fintech firm Robinhood laid off nearly a quarter of its employees. Technology car company Lyft to cut 13% of its workforce. Social media company Snap laid off one-fifth of its employees.

Meanwhile, companies like Amazon and Apple have delayed or stopped hiring, making it difficult for those who lost their jobs to find new jobs at major tech firms.

While the public is still wondering, many experts warn that this “elimination” trend will not end soon. JP Gownder, principal analyst at market analysis firm Forrester, said it is highly likely that businesses that have not laid off employees are also considering this.

“It wouldn’t be surprising if more layoffs occur in the next few months, especially in companies whose fiscal year ends on December 31,” Gownder said.

According to this expert, technology firms are resetting their financial plans to have a more successful 2023.

Businesses are implementing layoffs because they expect demand to decrease in the near future, amid the world economic situation facing many uncertainties such as inflation, high interest rates, conflicts in Ukraine. , and supply chain problems.

However, many people still believe that the current difficult situation in big tech has not yet reflected the general situation of the entire technology industry.

Big tech đào thải, cơ hội cho khởi nghiệp - Ảnh 3.

Source: LAYOFFS.FYI – Graphics: N.KH.

Technology is still a “hot” industry

When the current cycle of layoffs ends, experts say that companies that lose employees will spend millions of dollars to strengthen their teams. But these companies will face stiff competition.

When large technology companies cut staff, it is also an opportunity for start-ups. According to the New York Times, investors know that the most successful names of the past decade such as Airbnb, Uber or Dropbox were born after the 2008 economic crisis.

The history of Silicon Valley also shows that many iconic tech companies started out during the bear market. For example, Google launched in 1998, just before the dot-com bubble burst. Therefore, many people expect the current wave of layoffs to set the stage for new successes.

“To all affected by layoffs Meta: Monomi Park is hiring,” Nick Popovich, the chief executive officer of an indie game company, tweeted this week.

Meanwhile, venture capital fund Day One Ventures quickly responded to the wave of big tech layoffs by launching an initiative to target laid-off employees. Day One Ventures announced it would invest $100,000 in 20 different ideas for new companies.

PitchBook, which tracks start-up data, estimates venture capital funds like Day One Ventures have about $290 billion to invest. This is an abundant source of capital for new entrepreneurs.

In addition, chief economist Julia Pollak of the recruitment service company ZipRecruiter said that human resources in the technology industry currently have two paths: one is a safe route to businesses and areas less affected by the virus. Depression; The second is to set up your own company.

“Human resources in this sector have a big advantage. Demand for tech workers remains strong in a variety of sectors, from government to retail to agriculture. These industries have always been overlooked in the industry. years ago,” Pollak said.

According to the Computer Industry Association (CompTIA), the US technology unemployment rate in August 2022 was 2.3%, significantly lower than the national unemployment rate of 3.7%. America in the same month.

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Source : Genk