+6 votes
in Mics. by

Nearly 8,000 full-time and contractual employees were fired from their jobs in the latest round of layoffs. More firings in the first two weeks of May than in any full month since January 2021, while more than half the companies in an internal poll of Andreessen Horowitz’s portfolio say they’re pulling back on 2022 hiring.

Source forbes.com

I still don't know the reasons for this all, Please help me to understand. 

1 Answer

+1 vote
by Professional (616 points)

Some of the biggest tech companies in the world have breached the trillion-dollar market capitalization in the last few years (Apple, Microsoft, and Alphabet). However, with COVID-19 and oil wars escalating, the markets took a turn for the worst with the DOW dropping a sharp 2000 points, one of the worst days of trading since 2008.

Many believe that this could mean an upcoming recession or downturn that has been forecasted years ago.

Speaking to the Economic Times, Aditya Narayan Mishra, chief executive of Ciel HR Services, a staffing agency said, 

“These layoffs are happening across businesses and segments…. It is due to aggressive hiring by some startups and change of plans subsequently. Some companies are finding it hard to transition post-Covid-19.”

In a downturn, one of the first things expected is startups getting fewer funding opportunities in the market, especially for early-stage ones.

Looking at history, however, the most surprising thing is the number of deals angels and seed investors made during the GFC remained constant and actually rose.

Sources:

Welcome to Brainy Startups, where you can ask questions about startups. Simple StackOverflow for startups.



...