2022 was not an easy year on the public market and large startups. Big companies have consistently conducted massive layoffs, impacting thousands of lives mostly from the tech field. To name a few:
- Robinhood: laid off 1,013 employees, 30% of the workforce.
- Meta: laid off 11,000 employees, 13% of the workforce.
- Snap: laid off 1,280 employees, 20% of the workforce.
- Amazon: laid off 10,000 employees, 3% of the workforce.
Crunchbase has reported most of the tech layoffs in the United States for 2022, and the list is scarily huge!
The argument of the main cause for all these layoffs is still under debate. Some view it as a result of the post-pandemic economy. Others think it’s due to over-hiring and poor planning.
No matter the rationale behind these layoffs, our aim here is to show how to make use of the bright side of it. Of course, there is nothing good about being fired or letting whole teams go, but there are still moves we can make to make a twist to a brighter side.
The Good Side for New and Early Entrepreneurs
For the first time, massive numbers of high-quality calibers are looking for jobs. These are talents who got the approval stamp from big-name companies and gained experience in innovative companies.
If you’re a new entrepreneur, maybe it is time to go against the public’s intuition and accelerate your startup’s growth. Some of the laid-off talents have a passion for startups for sure, and finding them is now easier.
Convincing investors to invest, though, will take extra effort. It is more rational for them to think twice about every new investment after seeing startup giants suffering this year. So make sure your plan for the startup is sound and will endure the investors’ doubts.
The Good Side for Angel Investors and Accelerators
For investors, as mentioned, the risk of not finding talent to join the startup’s workforce is now lower. As long as the entrepreneur is promising and their plan is solid, the odds of finding talent are in their favor.
Additionally, some of the laid-off talents will consider starting their own company, leveraging both their expertise and network.
So, despite the current downtrend, it is a good strategy to keep scouting the market and investing in entrepreneurs with rich strategic thinking and solid ideas.
For entrepreneurs, check out our services for fundraising and finding investors.
For investors, check out our services for scouting, screening, and portfolio management.