Finance

Panic as global tech startups sack 1,229 staff in first 2 days of June 2022


In the first two days of June 2022, tech startups across the globe have laid off a total of 1,229 staff as they adjust to economic realities. The layoffs followed a similar pattern that was experienced across sectors of the startups in May, thus raising serious concerns for the budding startup ecosystem in Nigeria.

The layoffs are confirming several projections that tough times are awaiting the startup community as venture capitals slow down funding. High inflation across the globe and the ongoing Russia-Ukraine war are also projected to shrink the startup ecosystem.

According to startup layoff tracker platform, layoffs.fyi, 15 startups had sent off part of their workforce between Wednesday, June 1 and Thursday, June 2nd.  The latest of these was the California-based healthtech unicorn, Carbon, which announced the sacking of 250 employees yesterday.

Carbon had raised more than $500 million to date, including a $350 million round in July 2021 at a $3.3 billion valuation.

What they are saying

Announcing its layoff yesterday, Co-founder and CEO of Carbon, Eren Bali said: “For the last few years, we have been more focused on topline revenue growth, patient acquisition, patient retention and service expansion, and we have been less focused on profitability. While that was the right decision in 2020 and 2021, the macro environment with more volatile capital markets means it is vital that we become less focused on growth and more focused on profitability.”

Bali said the layoffs represented around 8% of the company’s global workforce.

Policygenius, a New York-based insuretech also issued a statement announcing 170 jobs cut yesterday. CEO and co-founder of Policygenius Jennifer Fitzgerald in the statement said: “As with many companies, the sudden and dramatic shift in the economy has forced us to adapt our strategy. After careful consideration, we announced the difficult and necessary decision to reduce the size of our workforce.

With these changes, we remain confident in the future of our company, our continued innovation, and the excellent service we continue to provide our customers every day. This is a difficult day for us at Policygenius, and especially for our employees who have been directly impacted. We’re saying goodbye to friends and colleagues who have, through their hard work and dedication, helped build this company and deliver on our mission for our customers. We’re grateful for their many contributions and wish them all the best,” she added.

The list of the 15 tech startups that have laid off staff between June 1 and June 2

 

Source: layoffs.fyi



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