Tech companies are doing layoffs. There’s some uncertainty in the air as stocks have crashed on public markets, startup valuations taken a hit, and investors are increasingly more careful when writing checks.
Just some days ago, YC – whose top companies have a combined valuation of more than $300 billion – sent their portfolio companies an email advising to prepare for the worst: cut costs, extend the runaway, and acknowledge that it can be hard to raise the next round.
All of it makes startups careful about the future. This also reflects in not only hiring slowdown but even rescinding job offers after they have been signed, which can be especially hard for people who declined other interviews or turned down competing offers at other startups.
But a market downturn can also be a great opportunity for startups who quickly change their mindset, cut costs, and plan ahead to make sure their company survives.
A similar uncertainty was felt when we covered COVID-19’s first effects on tech hiring, but while we did see a slight carefulness and even a hiring pause in some companies, it actually returned to similar levels rather quickly.
And although many startups are doing layoffs or slowing down on hiring, many others are opening up new tech roles in their teams. For these startups, it’s a great opportunity to grab some tech talent from companies who are doing layoffs or slowing down.