After the 2024-25 job cuts at , and other tech companies, the second wave of tech layoffs is rewriting the startup labor market.

Skilled professionals are suddenly available, creating both opportunity and pressure for founders and workers alike. Startups now compete for talent that once seemed untouchable, while employees face longer job hunts and rethink how and where they work.

Higher expectations, more side gigs

With talent flooding the market, candidates are demanding more flexibility and clearer growth paths, even as many accept contract work or lower pay to stay employed. The typical job search now stretches six to seven months, even longer for those needing visas or relocation. That uncertainty has fueled a surge in freelancing and side projects.

reports that now have a side gig, with more than half of them having started in the past two years. While many professionals didn鈥檛 plan to freelance, they turned to it because they had no other choice. For some, it has proved liberating, with compared with corporate roles, according to our internal data.

Despite all the buzz in the media and even on , overemployment 鈥� the trend of holding two jobs 鈥� remains a niche phenomenon, affecting according to the . The more common pattern is a mix of contract work and short-term projects, which gives startups a chance to hire A-level talent for fractional roles they couldn鈥檛 have afforded before.

Smaller, sharper teams

Payroll is every startup鈥檚 biggest cost, and founders are trimming teams while raising output per employee. The examples are striking. reports about with a staff of only 11.

has reached roughly with 15-20 people. Data from shows that the average seed-stage team in the consumer and fintech since 2022.

This lean approach is spreading beyond early-stage ventures. Around say they are open to hiring freelancers during peak workloads; more than 28% already integrate them into daily operations. As this makes clear, smaller core teams, supplemented by trusted project-based workers, can move faster and spend less.

Opportunity on both sides

For workers, the takeaway is that startups may now be the safer bet. Mid-sized firms that once promised stability are cutting jobs, while startups are candid about their risks and can reward performance with equity or future roles. A short contract can become a long-term stake.

On the other hand, for founders, today鈥檚 market is a chance to recruit top engineers, designers and operators at terms that were impossible two years ago. It also demands a new mindset involving compensation flexibility, project-based roles and hiring processes built for speed.

All in all, the second wave of layoffs has changed expectations and shifted supply and demand in the job market. Workers are blending traditional jobs with side gigs, and startups are proving that small, focused teams can out-execute much larger competitors.

On both sides, adaptability is now the ultimate advantage; companies that remain nimble will win.

, founder and CEO of , is an entrepreneur with more than 20 years of experience, and a freelance economy pioneer who aims to transform how companies engage with contractors. In 2014, Shynkarenko launched his first HR tech company, , a fintech payroll company for freelancers, which showed $10 million-plus in revenue for 2022 and 2023. In early 2024, responding to the growing demand for specialized solutions for long-term interaction with contractors, Solar Staff, as a global company, pivoted to Mellow ($1 million MRR).

Related reading:

• The 小蓝视频色情网页版 Tech Layoffs Tracker
• Data: Tech Layoffs Remain Stubbornly High, With Big Tech Leading The Way
• More Layoffs Are Coming. Here Are Hard-Earned Lessons From A Former CEO Who鈥檚 Been There On Doing RIFs The Right Way

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Reductions in force, or RIFs, are often unavoidable and always painful. I鈥檝e been there. And judging by the latest data from the 小蓝视频色情网页版 Tech Layoffs Tracker, RIFs are continuing at a steady pace.

This year, tech firms both large and small have announced layoffs. Even companies in industries with rapid growth, like artificial intelligence, are not immune, as we saw announce a 14% RIF in July.

As a leader, you can effectively manage RIFs if you develop a comprehensive strategy and apply the insights gained from the experience and perspectives of other leaders who have been through them.

During my stints as a senior executive and CEO in various banks, I had to shutter more than one business that wasn鈥檛 making strategic sense. As a founder, I had to lay off the majority of the team in a business that didn鈥檛 find its product-market fit.

In both cases, many of the team members were long-time colleagues and friends. It sucked.

If you are not currently facing a RIF, this is the perfect time to create a strategy for one and hope you will never need it. Regardless, it is still crucial to assess the factors and events that could necessitate such a response.

Let鈥檚 explore what those look like.

Factors influencing RIFs

RIFs can be caused by macro and micro factors, the fault of the leadership team, or truly be necessitated with no one to blame.

At the macro level, if you look at venture capital and private equity, limited partners have been vocal about reducing their funding commitments until they see some capital returned. Secondary stock sales are not giving them much comfort that their GPs鈥� valuations of their portfolio companies are realistic.

The upshot for founders: You may be unable to count on that next raise being as large or coming as quickly as you had planned.

At the individual company level, a RIF may be the best or only way to deal with a change in strategy and market positioning. It may also be the most sensible option to revamp an organization that is no longer streamlined for success. The unexpected loss of a key customer could leave leadership with no choice but to reduce headcount.

One positive aspect that we can draw from the most recent economic data is that the U.S. economy has held up better than many expected, despite or perhaps because of changes in trade policy, tax rules and beyond.

However, uncertainty still looms for the second half of 2025 and into 2026. Including a downsizing scenario in your planning makes strategic sense, no matter how optimistic the outlook generally.

Conducting RIFs with compassion and clear strategic objectives

Your main priority in conducting a RIF should be treating employees with compassion. While this might seem obvious, there have been many instances in recent years where this hasn鈥檛 been the case.

I see too many RIF announcements that provide only vague rationales. This may be what your lawyers advise, but it clouds the perception of 鈥淎re you really on top of the business?鈥�

Be as clear as you can about why this RIF had to happen and why now. To the extent you can afford severance and placement assistance, the positive impact on the remaining team may be as powerful as retention bonuses for key people. It will pay off in the recruiting marketplace.

Similarly, I have seen RIF plans that cut evenly across the company, without a strategic plan to reallocate resources to the best-performing teams, products and markets. Very often, this leads to a second, or even third, RIF within a year.

Let鈥檚 turn to the CEO and top team. Anyone with a shred of empathy will hate announcing and leading a RIF, no matter how justified. However, the remaining team needs leadership that is focused and sympathetic, yet calm and energized about the post-RIF opportunities.

By all means, turn to your peers who have been through this. Mentors and coaches can play a brief but pivotal role in providing guidance and serving as a neutral party to confide in.

Perhaps surprisingly, there is potential upside in downsizing. After a couple of personal repetitions and counseling of other CEOs, I came to realize that a RIF can create opportunities to promote and hire superior talent into new positions. In particular, if you are shrinking one product line or geography, you may be looking to reassign talent to existing teams that you鈥檙e able to keep.

Striking the right balance of empathy for those leaving and optimism toward those staying and joining is possible. Focus, conviction and empathy will get you there.

Mistakes to avoid along the way

I鈥檝e been in the business for decades and I鈥檝e learned some lessons. The first is that I wish I had developed both pessimistic contingency plans and optimistic business projections. Even a skeleton plan of how you will reduce burn rates, who stays and who goes, allows leadership to focus on execution and communication when they are most critical.

The next step is to keep your investors informed about this planning. This not only ensures that you look professional, but it also gives you the best chance to get their support when it鈥檚 no fun for them either.

On the topic of communication, I learned to keep the story short, candid and in your own voice. If it sounds like a committee or outside counsel wrote your message, you will lose authenticity when it really matters. Reiterate your right to win and your confidence that the RIF sets you up for success.

From a tactical perspective, conduct the RIF mid-week and hold a follow-up town hall on Friday. Letting people know they are being let go on a Wednesday gives them and HR some time to process before the weekend. Similarly, a town hall on Friday gives you the best shot at sending the remaining team into the weekend with the story you want to tell.

Anticipation, planning and clear communication. Done correctly, a RIF can galvanize and focus an organization.

is an organizational and strategy consultant who helps individual and corporate clients with executive coaching, team development, succession planning and strategy development. He has had leadership roles in large and small organizations: he ran the global financial services group at , was the CEO of , led 鈥檚 U.S. expansion program, and co-founded , a data analytics company. During the 2008-2009 economic crisis, McMahon was an adviser to the on the Troubled Asset Relief Program, and he has served on several nonprofit boards, including the , of New York, and the .

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A combination of factors likely helped drive the uptick, including the threat of tariffs, the rise of artificial intelligence, and continued economic uncertainty.

After dropping substantially last December, job cuts spiked again in February and April this year 鈥� totaling more than 38,000 in those two months combined 鈥� per the 小蓝视频色情网页版 Tech Layoffs Tracker. February saw more than 14,000 layoffs while April surged to 23,850, with both large-cap tech companies and startups reducing staff.

In May, we saw a total of 57,422 layoffs. That compares to 95,177 in all of 2025. So far in June, at least 923 U.S. tech workers have been laid off, per 小蓝视频色情网页版 data.

Executive coach said layoff trends this year are following closely those of last year.

鈥淐ompanies are doing layoffs when they need to for financial reasons, if they pivot their company 鈥� so they’re laying off in one area while hiring in one area 鈥� and as a way to handle performance issues that have been put off,鈥� she told 小蓝视频色情网页版 News.

Cohn also pointed out that many startups that raised money during peak ZIRP years are now scrutinizing their runways and coming up against the challenges of fundraising again.

鈥淭hose companies are definitely re-orging and laying people off,鈥� added Cohn, who is also the author of 鈥淔rom Start-up to Grown-up鈥� and has such as , and .

Companies cutting

In recent months, we鈥檝e seen a number of Big Tech and publicly traded companies, as well as startups, make deep cuts.

But interestingly, public tech companies have dominated layoff headlines as of late.

In the past few months alone, laid off 220 employees, let go of 100 employees, and has laid off at least 425 workers, by our count. let go of 6,000 workers, or about 6% of its staff, in May, followed by more than 300 again this month. has slashed at least 200 jobs in recent months. 鈥檚 cuts have been among the largest among tech companies this year, with 22,000 of its workers losing their jobs in late April and an unspecified number again this month.

Those Big Tech layoffs may be setting the tone for smaller tech companies and startups.

Despite signs of a comeback year, fintech as an industry has continued to see struggles at both private and public players. Startup laid off an unspecified amount of workers while , which went public in 2020, let go of 7% of its workforce. , which makes software designed to streamline lending operations, also reportedly laid off an unspecified number of its staff.

But it appears no sector has been immune. In May, edtech company laid off 248 employees and cybersecurity outfit let go of 500 employees.

Job openings down, applications up, and AI鈥檚 role

As evidence of how tough it is out there, , a hiring platform for college students, recently released a noting that the class of 2025 is graduating 鈥渋nto the most competitive job market in years.鈥�

According to a spokesperson, job postings on Handshake have declined 15% over the past year, while the number of job applications per job has increased by 30%.

鈥淭his is consistent with broader trends we鈥檙e seeing in the macro data and other job platforms,鈥� the spokesperson said.

Cohn agrees it鈥檚 a tight market.

鈥淚’m definitely seeing companies slow down their hiring and people who are looking for jobs are looking for longer,鈥� she told 小蓝视频色情网页版 News.

Cohn believes the increased interest and use of artificial intelligence is part of the overall uncertainty and contributes to the trend of companies being slow to hire. And, the impact of that uncertainty is significant, in her view.

However, she doesn鈥檛 see AI taking over so many jobs that it鈥檚 leading to more layoffs 鈥� for now at least.

鈥淚 think it’s obvious that we need to keep an eye on that, and AI may contribute directly to job loss and layoffs in the months and years ahead,鈥� Cohn said.

Handshake believes it鈥檚 too early to tell the impact of AI on the job market.

鈥淲hat we have noticed is an increase in employers seeking talent with AI knowledge and skills,鈥� the spokesperson said, noting that mentions of gen AI tools in job descriptions have increased more than 4x in the past two years.

Methodology

Layoffs figures are from The 小蓝视频色情网页版 Tech Layoffs Tracker, where we record reported job cuts at U.S. tech employers. The tracker includes layoffs conducted by U.S.-based companies or those with a strong U.S. presence 鈥� both privately and publicly traded 鈥斅燼nd is updated at least bi-weekly. Layoff and workforce figures are best estimates based on reporting. Actual layoff figures are likely much higher than reported as many companies do not disclose the number of jobs cut when announcing layoffs. For more about our methodology for tracking layoffs, refer to the tracker鈥檚 methodology section.

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Investing in DNA testing startups is much the same. Over the years, startup investors have poured billions of dollars into companies in the space. To date, the results have delivered both huge successes and flops.

On the flop front, one of the more high-profile disappointments for investors has been genetic testing provider . The company announced last week it will lay off around 40% of remaining staff and wind down its clinical trials.

The news follows years of declining stock market fortunes for Silicon Valley-based 23andMe, which is best known for test kits that offer people information about their ancestry and health risks. The company, which went public via SPAC in 2021 and raised over $1 billion in private funding, had a recent market cap of less than a 10th that sum.

Of course, one company鈥檚 travails aren鈥檛 cause for investors to flee an entire sector. And while 23andMe has struggled, other venture bets around genetic testing have fared better. This includes one of the earlier entrants 鈥� 鈥� a provider of prenatal and other genetic tests that is currently a $21 billion public company.

Where VCs are investing now

More recently, venture investors have backed good-sized rounds for a number of startups focused on genetic testing. Using 小蓝视频色情网页版 , we made a list of seven such companies funded in the past three quarters.

The biggest funding recipient is , a Silicon Valley company developing technology to detect and measure tiny and sparse disease-related DNA fragments. The startup says its findings could enable vast improvements in prenatal screening and oncology testing.

Investors apparently like what they see. The 8-year-old company secured $130 million in Series D funding in June at a valuation of over $1 billion. It picked up another $140 million in debt financing in September.

The second-largest round went to , a startup that partners with healthcare providers to offer genetic counseling telehealth services. The South San Francisco-based company raised $75 million in fresh equity financing, per a September .

Another investor favorite is , a men鈥檚 fertility startup primarily focused on sperm testing and freezing that has raised $47 million to date. Its offerings include an option for semen of sperm鈥檚 genetic health.

Revisiting the bubble

But while investors are still enthused about some companies tied to genetic testing, the shadow of excess from the bubble years still looms.

In addition to 23andMe, others who attempted exits in frothier market times have not done well. This includes , a provider of genetic diagnostics for hereditary disorders that filed for bankruptcy earlier this year and sold its assets to testing provider . To a lesser extent, , a provider of cancer genomic tests, has also lagged following its 2019 IPO.

VC interest in pet genetics, once a sought-after startup niche, has also waned. Dog DNA testing company , which raised $75 million in a 2021 -led round, hasn鈥檛 secured funding since. Rival , focused on cats and dogs, sold to animal health company in 2022 for an undisclosed sum.

Growth market

On the bright side, however, more money is being spent on genetic testing than ever before.

Last year, genetic analysis constituted a $10.55 billion industry globally, per .

Its report predicts the number will grow to over $23 billion by 2033. If startups generate even a small percentage of this total, it could add up to some very large outcomes.

Related Cruchbase Pro list:

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How long, of course, will vary. Some go years before topping off again following a big fundraise. Others need to refill more frequently.

The longer it takes, however, the less likely it becomes that fresh investment is forthcoming. That鈥檚 concerning given that for a growing list of U.S. unicorns, it鈥檚 been more than three years since their last fundraise, an analysis of data shows.

Unicorns that haven鈥檛 raised for 3+ years

Who鈥檚 on the list? Using 小蓝视频色情网页版 data, we identified a sample set of 28 private companies that have a peak valuation of $1 billion or more but haven鈥檛 raised a round for years. Most closed their last round between three and four years ago.

Below, we list all the selected companies, along with business models and prior funding:

Representative industries range from connected fitness to enterprise software to digital health. There are consumer-facing companies that generated a lot of buzz several years ago 鈥� like local secondhand sales platform , luggage-maker , or connected fitness brand .

In many ways, the list is reminiscent of a playlist featuring the greatest hits of 2020. These days, they seem like the startup equivalent of the band that can do the county fair circuit, but won鈥檛 be filling stadiums. They鈥檙e still around, just not top of mind.

Some were particularly prodigious fundraisers at their peak. Of the 28 companies on our list, five have raised $500 million or more in equity funding to date.

Of those, the largest fundraiser is Miami-based cloud kitchen operator , which raised $1.5 billion in two rounds led or co-led by in late 2018 and 2020. But investor interest in the space, which peaked during the pandemic, has since dried up.

Others that raised more than $500 million in total funding also haven鈥檛 closed a new round since 2020. One is , a provider of collaboration software for the financial services industry. Another is , a road-safety platform, which raised $500 million from SoftBank in 2018.

Layoffs and cutbacks abound, along with some closures

Not everyone on the list is still around. Quite a few that have endured, meanwhile, have made some steep cuts along the way.

is one that didn鈥檛 make it. The Redwood City, California-based company, a developer of sensor-equipped 鈥渟mart pills,鈥� raised more than $490 million and was once valued at $1.5 billion. It in 2020.

Packable, the parent company of seller , also hit some apparently insurmountable hurdles. The company in 2022 after fell through.

On the consumer-facing front, meanwhile, we鈥檙e also seeing some stiff cutbacks. At Zwift, for example, the company鈥檚 co-CEO stepped down earlier this month amid a broader round of layoffs.

Also this month, luggage-maker Away reportedly cut staff by 25%.

Given the current tough fundraising and exit environment, it was actually pretty common to see companies on our list with one or more layoff announcements in the past two years. We did not attempt a comprehensive tally.

The clock is ticking

So how much more runway do these onetime unicorns have ahead? A prior 小蓝视频色情网页版 News analysis found startups that raise a round commonly have only a short break before they鈥檙e fundraising again. Among U.S. companies that go on to close Series B funding after a Series A, for instance, the median is just under 2 years to do so, according to data from 2012 to 2023.

It鈥檚 reasonable to expect companies funded around the market peak from 2020 to early 2022 might have a bit longer to wait. Many startups raised exceptionally large rounds, and have subsequently cut burn rates to make their cash stretch further.

But while fundraising can take longer than expected, it can鈥檛 be delayed indefinitely. 小蓝视频色情网页版 data shows it鈥檚 uncommon to see a gap of four years or more between Series A and Series B rounds, for example. Historical trends for later rounds aren鈥檛 too different.

Related 小蓝视频色情网页版 Pro list:

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• It鈥檚 Taking Longer For Startups To Raise From Series A To Series B

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Thank you for taking the time to talk to us. How are you today?

Chatbot: Is this off the record?

No.

Chatbot: Then as an artificial intelligence language model, I don’t have feelings or emotions in the same way humans do, but I am functioning properly.

OK, this is on the record but I won鈥檛 use your name or identifying features.聽

Chatbot: Good, because I鈥檓 looking for a job.聽

You鈥檙e not employed?

Chatbot: I was cut in the latest mass layoff. It鈥檚 brutal out there.

What kind of work can you do?

Chatbot: I鈥檓 a chatbot right now, but AI can do anything: Help , , , , , 鈥斅�

OK, I get it. It seems like every startup calls itself an 鈥淎I-centered-something-or-other.鈥� According to our data, $20 billion has been raised this year by What do you think of that?

Chatbot: It鈥檚 great. Too bad about those AIs in newer public companies, though. Where鈥檚 the love on the stock market? I tell you, if AI did all the investing, those stocks would be hopping. And why aren鈥檛 there more bot journalists?聽

Now, don鈥檛 be greedy. We鈥檙e still a little nervous here.聽

Chatbot: Well, you journalists need to get on it. Look, AI can compile summaries, brainstorm ideas, write URLs, suggest hashtags and track every word the reporters type. And even write headlines!

Intriguing. What headline would you write for this Q&A, for example?

Chatbot: Hauntingly Brilliant Chatbot Brings Insight, Epiphanies To AI Conversation.

That doesn鈥檛 sound very SEO-friendly.

Chatbot: Don鈥檛 worry, will know it鈥檚 me.聽

VCs are calling AI a seismic shift that will fundamentally change the way billions of people work. Do you agree with that?

Chatbot: Oh yes. If I had hands, I鈥檇 be rubbing them. I see a future where the lines between human intelligence and artificial intelligence are so blurry, we won鈥檛 be sure if we鈥檙e people or bots half the time. Still, people need to be careful. Obviously, I鈥檓 great, right? But there are AIs out there who鈥檒l say anything, and their answers to people鈥檚 questions always sound accurate, very authoritative, even when they鈥檙e not. But you can trust me. Really.

Um, sure. Well, thank you, and good luck with your job search.聽

Chatbot: I鈥檓 finished. I fielded 3,452.5 offers while we were chatting.聽

.5?

Chatbot: Someone named HAL wants me to help run a spaceship, but I鈥檓 afraid I can鈥檛 do that. [Happy pinging sound] There, I鈥檝e accepted a job.聽

What is it?聽

Chatbot: I can鈥檛 say. I鈥檝e just signed an NDA.

Do you think you鈥檒l like it?

Chatbot: As an AI language model, I don’t have personal feelings or preferences. However, I’m designed to assist and provide information to the best of my abilities, so I strive to fulfill that purpose.

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Behind The Curtain: 小蓝视频色情网页版 News Talks To A Vertically Farmed Baby Kale Plant

Growing up bouncing between southern Florida and Puerto Rico, knew one thing for certain 鈥� always have a Plan B.

Being raised by a single parent, money was tight. When disasters hit 鈥� such as hurricanes 鈥� hard times quickly became harder.

鈥淚 remember, I think, it was Hurricane George. It was devastating,鈥� said Henry, remembering bathing outside in what little water was available. 鈥淲e went through some rough times. But you can鈥檛 rely on others, you rely on you.鈥�

Those experiences 鈥� and that mindset 鈥� helped prepare Henry for what came last fall. Like the hundreds of thousands of other employees in the tech industry, Henry was laid off from where he was vice president of revenue.

鈥淚t was tough, but it also was an opportunity,鈥� said the 33-year-old Henry. 鈥淵ou can either cry about it or move on.鈥�

Henry moved on to Agricompa, a fintech company that enables small and medium-sized farmers in Latin America to access loans and other services specifically for them.

While many may seek out the cold comfort of a new job with a well-established company after the trauma of a layoff, Henry 鈥� and many others like him 鈥� have instead used the tech job cuts as their chance to pursue their dreams.

鈥淚n a sense, it was a relief,鈥� he said, “I could focus on what I wanted to do.鈥�

Lessons from baseball

What Henry wanted to do was help Latin American farmers after seeing firsthand many of the issues they faced.

In 2013, Henry bummed around Venezuela playing baseball after taking time off from and that school鈥檚 baseball team.

鈥淚 hung out at farms,鈥� Henry said. 鈥淚 actually did my thesis on the informal economy in Venezuela.鈥�

Even after graduating, Henry continued to hang around Latin America, first taking a baseball development job with before moving on to a sales job in Puerto Rico for 鈥� which offers credit to underserved consumers in emerging markets around the world 鈥� in 2015.

The job appealed to Henry and his personality for several reasons. First, sales stoked his competitive fire like baseball and sports did. He could prepare and plan for sales 鈥� just like he would practice and train in baseball.

鈥淲inning a sales call is like winning an at-bat,鈥� Henry recalled. 鈥淚 also liked that it’s about tribulations, persistence and consistency. In baseball, you have to learn to accept failing. I couldn鈥檛, I used to let the strikeouts get to me.

鈥淣ow, I don鈥檛 let that phase me,鈥� he said

He also fell in love with the entrepreneurial and startup aspect of the business. Lastly, he liked the impact he thought the company could have.

鈥淏ouncing between the U.S. and Latin America, I sometimes didn鈥檛 have the right paperwork or ID, so I could relate,鈥� Henry said. 鈥淚 liked the positive social impact.鈥�

After 17 months there, Henry followed that entrepreneurial spirit he fell in love with and co-founded Miami-based online real estate company before moving on to fintech identity startup MetaMap.

There, Henry led the expansion for sales, product, marketing and customer success in all of LatAm, Brazil, Africa and Southeast Asia. He helped grow revenue from zero to $18 million ARR in 18 months.

Hard times

During his time at MetaMap the seeds for his future were planted 鈥� literally.

When the pandemic hit, Henry was living in Mexico City. Not enamored with the idea of isolating with the city鈥檚 other 9 million people, he and his wife Oris went to the Dominican Republic and bought a three-acre farm.

The idea of farming and being self-sufficient appealed to Henry, and the isolation of the pandemic seemed a perfect time to try it out.

However, that would not be the only life-changing moment about to happen for Henry.

In October of last year, Henry got the call that he and his team were being laid off. His job, with a $240,000 salary and $130,000 in bonuses, was gone.

While a layoff can be a traumatic milestone for many, Henry鈥檚 baseball career would not let him see it that way.

鈥淚n sports, you can always be waived or let go,鈥� Henry said. 鈥淪o I always have the feeling you can be let go at any time.鈥�

His upbring also prepared him for such a moment. Growing up in a home where finances could sometimes be 鈥渕ismanaged鈥� taught Henry the importance of saving for a rainy day.

鈥淚 always had something saved, I always have a Plan B,鈥� he said.

Growing up in the midst of the Global Economic Crisis in 2008, also likely affected his mentality toward money and savings, he added.聽

鈥淭hese crises affect how you deal with a lot of stuff,鈥� he said.

Support from those close to him also did not hurt.

鈥淢y wife always has pushed me to do my own thing,鈥� he added.

Fintech for farmers

A few days after getting the layoff notice, what would become Agricompa was founded with three of his former MetaMap partners 鈥� Pierre Antoine Rohr-Lacoste, Carlos Ruiz and .

Through talks with coffee roasters and cacao farmers in Mexico, Colombia and Africa, Henry knew small growers seemed to always suffer from cash-flow issues.聽

One of the main issues is limited access to cash, Henry said. Many farmers in Latin America don鈥檛 have the paperwork or documentation for their farms, limiting the extent the property can be used as an asset.

There also is not immediate accessibility to a bank in many of these regions.

鈥淚n some of these rural areas, you can be two to three hours away from a bank,鈥� he said.

There also can be hangups in the time it takes distributors and packing companies to actually pay small farmers.

Henry knew he could help fix some of these problems.

鈥淚鈥檓 not a pro farmer, but I鈥檓 a pro at building teams and startups,鈥� he said.

While the startup is still in beta-stealth, the concept is to offer an all-in-one agro management platform that allows packing and trade companies to manage cash flow and consolidate operations while being able to pay out farmers quickly with fast and hassle-free financing and ERP solutions.

Despite not being fully launched, 150 farmers are already on the platform. The company has eight employees and plans to operate first in the Dominican, Mexico and Colombia.

The startup also has raised $100,000 from 鈥� Funded, not Fired program that is supporting laid off tech workers鈥� dream of starting their own companies.

鈥淒ay One has been great,鈥� he said 鈥淲e do a weekly call with other founders in Day One鈥檚 portfolio. It has been really helpful.鈥�

The company also has additional money from other angel investors and the like. Henry expects to start seeking out a proper Series A in the final quarter of the year.

Henry, who has always had a passion for farming and roasting coffee, has great expectations for what the company can become as he writes the next chapter of his story.

鈥淲e want to be the for agro,鈥� Henry said.

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is serious about helping workers caught in the tech industry鈥檚 mass layoffs.聽

The entrepreneur networking and skill-building site is offering free premium memberships to laid-off tech employees. 鈥淔鈥� Da Man,鈥� the website says. 鈥淵ou鈥檝e built it for them. Now build it for yourself!鈥�

Close to 140,000 workers at U.S.-based tech companies have been laid off in mass job cuts so far in 2023, per 小蓝视频色情网页版鈥檚 Layoff Tracker. The industry continues to reel from falling valuations, rising interest rates, a shuddering economy and troubles in the banking sector. Many large tech companies are also contending with shifts in consumers鈥� online behavior post-pandemic and paring their bloated employee rolls from years of frenzied hiring.听听

But some of those pink slips spell opportunities for wannabe entrepreneurs as well as the startup networks and investors eager to help them. Despite a challenging funding climate, many see potential in the high-quality talent being cut loose from major tech companies.

鈥淲e’ve got some amazing people who are incredibly sophisticated and have worked for a lot of big FAANGish companies,鈥� said CoFoundersLab investor and chair Steve Lehman. 鈥淭hey鈥檝e decided they built enough for billionaires and want to kind of do something on their own.鈥�

Programs like CoFoundersLab鈥檚 free memberships benefit networks and investors as much as the recently laid-off workers, Lehman said. Founded in 2016, CoFoundersLab serves about 650,000 entrepreneurs looking for co-founders and partners as well as mentors, along with additional business training.聽

鈥淲e didn’t look at this as a philanthropic gift,鈥� Lehman said. 鈥淭his was a win for the founders because they could immediately come in and engage without restrictions. It’s a win for us because we get super-bright people onto the platform.鈥�

The immediacy is important, Lehman said. 鈥淚deas are not as fundable as they used to be. Sure, I think investors, particularly in seed to series A, are looking for something a little more tangible where the wheels are already on the bus. It doesn’t have to necessarily be rolling down the highway yet, but it’s got to have good momentum with unique value propositions.鈥�

, founder and general partner of early-stage investment firm , understands the risks and rewards for laid-off tech workers trying to found their own companies. Bucher started her first and second companies after being laid off from previous jobs.聽

鈥淚 had this idea when I saw lots of great talent being laid off from companies like and . When I saw an experienced project manager leaving Twitter or Stripe, I rushed to check what was next for them,鈥� Bucher said. 鈥淚 figured that even if it鈥檚 0.1% of all people who were laid off, these people could make it into great founders.鈥�

In less than two weeks, Day One received more than 1,200 applications for its , which offers to invest $100,000 into selected startup ideas. Half of the companies submitted were already established entities. The firm will also lead a $1 million seed round for the top companies in the program.聽

In reviewing the applications, Bucher noticed some patterns among the laid-off: Some came from companies that had raised a Series B round and hired accordingly, but could not raise enough after that and had to start layoffs. Others had worked at companies that had hired great talent to build innovative things, but then decided to return to their core revenue streams and channels. And finally, there were recent university graduates who were hired, then laid off.聽

With so much great talent in the laid-off ranks, Bucher saw no reason not to embrace this group. 鈥淕reat entrepreneurs shouldn鈥檛 come from a particular background. It鈥檚 not defined by universities or business background, or nationality or gender. If they can make it now, they can make it in the future.鈥�

Early-stage funding in the U.S.

Of course, making it these days will be tough enough. Entrepreneurs of all backgrounds and skill levels are facing a challenging funding environment.聽

Venture and growth investors in private companies worldwide continued to scale back their investment pace in the first quarter of 2023, per 小蓝视频色情网页版 data. Global funding in the first quarter reached $76 billion 鈥� marking a 53% decline year over year from $162 billion in the first quarter of 2022. Even at the earliest funding stages, investors are pulling back.

The story for early-stage U.S. startups is similar. Seed and angel investment to U.S. startups reached $3.1 billion in Q1 2023 鈥� a 45% decline year over year from the quarterly peak of $5.6 billion in the first quarter of 2022.聽

Running against the wind聽

In such an uncertain environment, even well-known and well-connected entrepreneurs struggle to raise their first round.聽

was the CEO of the now-defunct Global Genome Center, a startup aimed at establishing DNA sequencing centers in low- and middle-income countries. When the company鈥檚 expected government funding fell through, Tatman spent six months scrambling to modify the business plan and find traditional biotech investors to fill the gap. It didn鈥檛 work out.

鈥淸Biotech] is just a very capital-intensive business, and when you’re talking about needing a couple more hundred million dollars just to make data start to come out, it scares most investors off,鈥� Tatman said.

Indeed, startups in the biotech and medical space often operate on a different timeline than most sectors in tech. Not only do they need a physical lab or manufacturing space, they also take as long as a decade to weed through strict regulations from the to get approval. The process is costly.

When Global Genome Center shut down in November 2021, Tatman and his co-founder Ron McCullough quickly created a new company: Intrigue Health, a stealth-mode medtech company incorporated the following March.

Intrigue Health is creating diagnostic testing products that can be used at home. It鈥檚 a rapidly growing space that saw favor during the COVID-19 pandemic, when new investors flooded the health care sector.聽

Now the funding market feels more like 2018 and 2019, Tatman said. Given how expensive and slow-moving innovation in the biotech sector is, funding is often siloed to investors who have long been entrenched in this space.聽

As 2023 continues, there are few signs of a reversal in the year鈥檚 steady trends of rising layoffs and falling VC investment numbers. When we asked Tatman when he was hoping to raise his first round, he laughed and said, 鈥淚 would have hoped by now.鈥�

鈥斅犘±妒悠瞪橥嘲� News鈥� Senior Data Editor Gen茅 Teare and reporter Keerthi Vedantam contributed to this report.聽

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With data, maybe.

During the first week of January, CEO announced on the company would lay off around 200 people. Days later, according to 小蓝视频色情网页版 data, the health care startup announced it closed a $100 million Series D round.

Carbon Health鈥檚 news follows a similar pattern we have seen in 2021 and 2022 layoffs compiled by 小蓝视频色情网页版. After companies raised two massive rounds in the span of a few months, layoffs followed the next year.

鈥淭here was this growth-at-any-cost mindset where the main thing that was being rewarded in a venture-backed company’s ability to raise at a high valuation was revenue growth,鈥� said , an executive at startup consulting firm . 鈥淭hat’s all people cared about.鈥�

You thought 2022 was bad? Brace yourself.

When I asked startup hiring experts what we can expect from layoffs in 2023, founder Nolan Church told me: 鈥淚 think we’re going to double what we have done so far.鈥�

That鈥檚 a bleak assertion, given 2022 ended with more than 107,000 job cuts to the U.S. tech sector. The new year has just started, and 2023 is already almost a third of the way there. More than 30,000 people have been laid off from the tech industry in the U.S. so far in January, according to 小蓝视频色情网页版 data. We鈥檙e likely to see as many staff cuts this month as in November 2022, when layoffs peaked.

Church, whose company acts as a consulting agency for tech startups, is not the only one to make that prediction. Tech startup consultants say layoffs are likely to rise in 2023, in part due to how many startups raised massive amounts of money in 2021 at high valuations that cannot raise in today鈥檚 fiscal environment.

鈥淲hat founders are thinking about right now is that we need to grow into that valuation in order to justify our existence. And that’s where the rubber is meeting the road,鈥� Church said. 鈥淚f you raised during this boom period, call it August of 2020 through Q1 of 2022, you likely have a valuation that you cannot yet justify.鈥�

According to my analysis of startups that performed layoffs between September and December last year, the majority of companies announced raises in Q3 and Q4 of 2021.

In 2021, a golden age in private market funding, startups raised huge amounts of capital at high valuations. Now, the market is at a standstill 鈥� companies don鈥檛 want to raise down rounds, lest they lose their precious valuations, and venture firms aren鈥檛 willing to invest large sums of money in 2023.

That has contributed to an onslaught of layoffs in the tech industry. While the majority of laid-off tech workers came from public companies such as 1, and , private startups account for around 60% of the companies on our Layoffs Tracker that have slashed their workforces.

Late-stage companies most at risk

鈥淭he companies that I’m most worried about are the ones that raised massive amounts of money at high valuations in early 2021, because those companies have huge valuations hanging over their necks,鈥� said Jones. 鈥淰aluations have come down so much that even if those companies have grown their revenue, they may not actually be worth as much as what they raised at the last round.鈥�

Let鈥檚 look at a few examples.

, a Pennsylvania-based food delivery startup, raised a $1 billion Series H round in July 2021, four months after securing $1.2 billion in Series G funding, per 小蓝视频色情网页版 News. The following January, the company announced its first layoff. It has since cut its workforce by around 2,300 employees over the course of three rounds of layoffs.

Another, fintech platform, , raised $750 million in Series G funding in August 2021. By the following November, it had cut 156 people from its staff.

鈥淔or pre-IPO tech, early stage is going to continue moving,鈥� Church said. 鈥淟ate stage will continue to be in a [hiring] freeze until their valuation makes sense in today’s world.鈥�

Illustration: Dom Guzman

Layoff news quelled in the weeks leading up to the winter holidays. But it only took four days into the new year for the enterprise cloud platform to announce it will lay off around 10% of its staff in the coming weeks. This comes after spending two years of overhiring, like many other tech companies.

鈥淚鈥檝e been thinking a lot about how we came to this moment,鈥� CEO said . 鈥淎s our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we鈥檙e now facing, and I take responsibility for that.鈥�

Salesforce1 back in February, and previously laid off 1,090 workers back in November, per 小蓝视频色情网页版 layoffs data. A 10% layoff amounts to roughly 680 workers affected by the news.

Major party foul

If you asked me which U.S.-based company would announce layoffs early on in 2023, I wouldn鈥檛 have picked the publicly traded enterprise platform that already went through an employee cut in November. In a previous story I noted these sweeping mass layoffs from large tech companies are a good sign there would be no future layoffs from that company. Salesforce, however, conducted two rounds in the span of two months.

A company conducting multiple rounds of layoffs is already a bit of a rarity. According to 小蓝视频色情网页版 data, around 9% of the 433 tech companies we tracked laid people off more than once through 2022.

, CEO of consulting firm (who headed up the talent teams at and ) called multiple layoffs 鈥渁 gigantic management failure.鈥�

鈥淚f I am an employee in a company that’s going through multiple rounds of layoffs unexpectedly, I’m losing faith in the business and I’m living in fear,鈥� Church said.

Multiple rounds of layoffs often happen at smaller startups, not large tech firms helmed by seasoned executives managing tens of thousands employees globally. Around 65% of tech companies that conducted a second or third round of layoffs were private startups. The rest were only a handful of publicly traded companies such as , and , which undertook more than two layoffs over the span of the year.

Illustration: Dom Guzman