Emerging trends in tech often bring surprise and excitement. Whether it’s the rise of a new sector or the introduction of new technology, everyone is eager to get involved in these types of developments.
One of the biggest trends that emerged in tech this year was the increasing number of layoffs. According to data tracker layoffs.fyi, over 780 companies cut a significant amount of their workforce this year. The actual number of people affected by these cuts is likely higher due to the delays in reporting.
The data source noted that the number of layoffs in tech has started to decrease. In May, June, July, and August, over 70% of the people who were laid off were let go. Since the summer of sadness, the number of layoffs has decreased significantly. In September, the number of layoffs had halved, while in October, the impact of layoffs was slightly higher.
Unfortunately, the data source layoffs.fyi has only been able to track the public and tipped layoffs, which means that there could be many more layoffs that are not being reported. Also, zombie attacks are known to occur under the surface.
A zombie company is typically a startup that raised a huge amount of money during the boom cycle, but it’s not generating enough revenue to justify its historical valuation. According to the founder, it will take a long time for the market to realize the full potential of these companies due to the amount of capital that they have gotten overcapitalized.
Another issue that’s likely to occur once companies run out of cash is that more layoffs are likely to come. Today’s numbers are only a “time frame” to see how far the tech industry has come since the start of this readjustment.
In fact, despite the various initiatives that have been made to reduce the number of layoffs, layoffs remain. For instance, today, Zillow announced that it is cutting 5% of its workforce. Also, Cerebral announced that it is reducing its workforce by 20%. Some of the biggest layoffs that occurred during this period were those of Getir and Byju.
Dil Bole Oberoi
