If you were on Twitter at the end of last week, you probably saw a dribble of conversations about layoffs in tech coming, and today, the volume was turned up to 10 on social media. Several founders have said they’re cutting parts of teams and are nixing contractors. We’re about to be in a recession, y’all, and we can ALL feel it coming.
While this has been happening all of this calendar year, a pending recession is kicking the stock market in the teeth (especially in tech), and combined with a slowdown in fundraising, fuel has been added to what was simply kindling, and layoffs are already rapidly escalating.
The next 6-8 weeks is going to be a bloodbath. I'm hearing rumors about a ton of companies preparing to lay off 20-40% of their team https://t.co/R6Ufq6zjXs
— JD Ross (@justindross) May 5, 2022
JD isn’t the only one hearing it, my inbox has slowly been lighting up on this topic. In response, Joshua Baer noted that it’s a great time to scoop up talent. Love or hate him, he’s right.
Good time to add great talent to your team if you are still hiring! https://t.co/NPzwcp09x2
— Joshua Baer ?? (@JoshuaBaer) May 5, 2022
There is a lot of data on tech layoffs, for example, Layoffs.FYI has been tracking meaningfully since COVID began, pulling info from public reports. We expect they’ll be busy for the next few months.
While VC funding in 2021 was at a global high, so far, 2022 has shown a significant slowdown, according to CrunchBase. Many believe valuations are tumified, a bear market is believed to be upon us, and tech firms are struggling to increase profitability, all combining to a bubble about to burst.
As Baer noted, the silver lining is for anyone looking to hire. It’s bad news for anyone about to get a pink slip, but it’s also empowering to know that candidates are still in the driver’s seat in this market and negotiations are still in their favor.
We at AG have communities dedicated completely to job seekers and employers, and have created neutral ground on which they can meet, and they do by the thousands (Austin Digital Jobs and Remote Digital Jobs).
We’re not seeing the “bloodbath” of folks with pink slips in hand yet, BUT today, a dozen mid- to senior- level technologists reached out to me personally that got laid off Monday morning.
With our finger firmly on the tech employment pulse, we agree with the assessment that layoffs are coming.
More on this topic: “Why are tech layoffs coming after such great Q1 earnings?!”
Here’s the TL;DR version in memes: