If you’ve been on LinkedIn recently, you’ve likely seen posts about someone being laid off or having a dream job offer rescinded, often by a high-profile, once hot startup. According to the tracker Layoffs.fyi, so far this year, 349 startups have laid off more than 53,000 employees.
Startups looking at the prospect of falling venture capital valuations are scrambling to conserve the cash they have. Just yesterday, OpenSea, the early leader in the once bubbly non-fungible token (NFT) market, cut 20% of its workforce. Earlier this month, virtual office startup Gather let a third of its 90 employees go. Last month, high-flying ID verification unicorn Socure laid off 13% of its employees.
And it’s not just startups. Coinbase, the nation’s largest cryptocurrency exchange, laid off 1,100 employees and rescinded some job offers. Elon Musk’s Tesla is cutting 3.5% of its workforce. Meta has plans to slash hiring of engineers this year by at least 30%.
While most of the layoff news has come from tech companies, the mortgage industry, too, has been slashing away as higher interest rates crush mortgage volume. This week loanDepot disclosed plans to eliminate thousands of jobs. Real estate companies RedFin and Compass have cut about 450 jobs each, and PIMCO-backed First Guaranty Mortgage Corporation let go of more than 75% of its workforce in June, before filing for a chapter 11 bankruptcy a week later.
Despite such high-profile layoffs, unemployment remained at a low 3.6% in June as the economy added 372,000 jobs. Moreover, interviews with recent job–or job offer–losers, as well as hiring managers, suggest that so far at least, most of those cut are landing on their feet with new offers.
Yet the sense of dread is unmistakable, with more consumers now pessimistic than optimistic about the short-term labor market, according to the Conference Board. And the layoffs could just be getting started: Oracle recently considered letting go of thousands of employees as early as August.
“In the tech industry, this is dejà vu all over again,” observes economist Anthony Carnevale, who has been involved with employment and education policy for four decades and is now director of the Georgetown University Center on Education and the Workforce. “This is pretty much precisely what happened in the late 1970s, early 80s, when technology was not penetrating American industry rapidly enough and [former Fed Chair] Paul Volcker put on the brakes. We get high interest rates, high unemployment rates, and basically that shuts down technology investment and secondly, it chokes the industry.”
Given the current low unemployment rates, Carnevale adds, it’s still a question whether the slowdown will ultimately “create dislocation of substantial sorts in tech or any other industry.” His answer? “Yes and no,” he says. “The yes is yes, specific technology-based industries might be affected, interest rates being the culprit here. But what we’re seeing in the churn is that people who are seeking jobs are getting jobs. And we haven’t come to the point yet where it’s a classic recession…in which people don’t get jobs.” He noted that in general, wages are increasing — though those increases are generally offset by inflation.
“So what does that mean going forward? It may mean a slowdown in startups and in the expansion of particular technology companies, in even the overall industry if it’s strong enough, but so far, it has not meant that people can’t find jobs,” Carnevale said. “And it does not reflect on the possibilities for college graduates, at least so far, we don’t really see that.”
Indeed, a recent survey of almost 200 employers by the National Association of Colleges and Employers found that almost 90% of respondents will be hiring new graduates for both full-time and intern/co-op positions — up from last spring’s figure of 83%.
But while early-career recruiting is still strong, it can’t erase the memory of what happened in the wake of the Great Recession, with its large jobs loss and unusually slow recovery. Some new grads caught in the undertow experienced what economists call “permanent scarring”—meaning poor economic conditions when they graduated from college contributed to a long-term reduction in their employment prospects.
Again, that’s the scary prospect, but not, as of now, the reality.
Aidan Deery, associate director at the global talent partner X4 Technology, reports that among tech companies, “largely, everyone is still hiring” and “the demand for experienced professionals is at an all-time high.” He adds that those laid off from crypto companies like Coinbase are generally “very employable” and “highly sought after in the finance and technology world.”
Danny, 23, whose last name and former employer are not being included due to a nondisclosure agreement he signed, was let go in June from his engineering job at a sales productivity company. “I know I’ll be able to find a job,” he said, estimating that of the roughly 30 jobs he applied to since being laid off, 8-10 got back to him. “Three of them actually were like, ‘Yeah, just kidding, we’re not hiring for this role.’” Some of the other companies he started interviewing with stopped the process because of hiring freezes. However, Danny has already turned down one offer for reasons including the pay, and says he is still being picky in his job search.
Curio Health, a startup working to improve remote patient care, is among the companies still hiring. CEO Yuchen Wang worries that layoffs among startups may encourage job seekers to look to more established companies for future opportunities, but insists startups will retain their appeal because, “you take a broader responsibility, and you can grow faster and learn more.”
Wang has seen both sides of this job-cutting drama. He himself lost his job in 2001, shortly after earning a Masters in computer science at Georgia State, and in a later role, had to lay off employees himself because a contract did not pan out as well as expected. “These things kind of happen, even if you do everything 100% perfectly,’’ he says. “Treat it as a new start — there are more opportunities ahead than the one you just lost.”
Still, for some job-losers, the new start carries a unique challenge–one imposed by the U.S.’ dysfunctional system for retaining foreign tech talent. Twenty-seven-year-old software developer Amitesh Singh Baghel was laid off in late June while on STEM OPT, a visa program allowing graduate international students to gain work experience in the U.S. in their field. The catch: he lost his job as a software engineer at a data security startup before he completed his visa extension — about two weeks before his employment authorization document was set to expire.
He had been offered other jobs while working there but turned them down out of “goodwill” and because his manager, who also was let go, provided good mentorship. “I had other offers coming, but I chose to stay ignoring the red flags,” such as a manager being fired and not replaced, he said.
“I tried to negotiate. I was like, ‘Instead of giving me the severance pay, keep me on the payroll so that I can finish with the extension process and I’ll still work,’” he said. “I offered them a solution…but they didn’t want to do the extra work, which is understandable. I mean, it’s not their problem.”
And then there’s the experience of Jenna Radwan, 22, who recently earned her BS in Entrepreneurship & Innovation at the University of San Francisco. She originally accepted a job at San Francisco-based startup Hirect, which helps other tech startups recruit and hire. When she heard Hirect would pay her a base salary of $80,000 plus uncapped commission that could push her total compensation to a multiple of that, she cut short other interviews to accept the offer, “My ears perked up, my eyes got big, and I didn’t even see any of the other companies as even close competition,” she said.
But two weeks before her start date, Radwan got thrown a curveball. Her offer had been rescinded “due solely to the current unforeseen circumstances & drastic turn in the market.” “Due to the very volatile market conditions, the business & leadership team has decided to halt/freeze all forms of external hiring at this time, and we have entered an immediate hiring freeze and a round of layoffs,” reads an email from a recruiter that Radwan shared on LinkedIn. (A spokesman for Hirect confirmed to the Wall Street Journal that it had rescinded two job offers due to the slump in tech hiring.)
Radwan was “in shock,” but quickly tapped into her network and reached out to recruiters she’d previously been in the process of interviewing with, and ultimately landed a job as a recruiter at Insight Global. “It was a wild ride but I know that I’m exactly where I am meant to be,” Radwan said, adding that she hadn’t really considered her values in terms of a career before then. “I just thought of money, but I realized that you can have money plus other things, like good company culture, like good job security, like good benefits, like good PTO,” she said.
Her advice for recent grads entering the job market amid the growing fear of offers being rescinded? Do your research, ask questions like how the company reacted to COVID in 2020 (i.e. was it quick to lay off workers?), talk to current employees and take time to weigh all your offers.
If you’re looking for an indication of the current gestalt, it may come from Radwan’s new employer. Insight Global is still hiring. But in June, it surveyed 1,000 workers and found 23% were “extremely worried” about losing their job in the next recession. Or, as Insight put it, the “Great Resignation” is giving way to the “Great Apprehension.”
Source: Wave Of High-Profile Tech Layoffs Raises Fear Of Recessions–And Stalled Careers–Past
Related contents:
Crypto Exchange Gemini Axes 7% of Its Staff in Second Wave of Layoffs
More Remote Working Apps:
https://quintexcapital.com/?ref=arminham Quintex Capital
https://www.genesis-mining.com/a/2535466 Genesis Mining
http://www.bevtraders.com/?ref=arminham BevTraders
https://www.litefinance.com/?uid=929237543 LiteTrading
https://alpariforex.org/fa/registration/?cpa_partner_id=13687690 Alpari Forex Trading
https://dealcheck.io?fp_ref=armin16 Dealcheck Real Estate Evaluator
https://jvz8.com/c/202927/369164 prime stocks
https://jvz3.com/c/202927/361015 content gorilla
https://jvz8.com/c/202927/366443 stock rush
https://jvz1.com/c/202927/373449 forrk
https://jvz3.com/c/202927/194909 keysearch
https://jvz4.com/c/202927/296191 gluten free
https://jvz1.com/c/202927/286851 diet fitness diabetes
https://jvz8.com/c/202927/213027 writing job
https://jvz6.com/c/202927/108695 postradamus
https://jvz1.com/c/202927/372094 stoodaio
https://jvz4.com/c/202927/358049 profile mate
https://jvz6.com/c/202927/279944 senuke
https://jvz8.com/c/202927/54245 asin
https://jvz8.com/c/202927/370227 appimize
https://jvz8.com/c/202927/376524 super backdrop
https://jvz6.com/c/202927/302715 audiencetoolkit
https://jvz1.com/c/202927/375487 4brandcommercial
https://jvz2.com/c/202927/375358 talkingfaces
https://jvz6.com/c/202927/375706 socifeed
https://jvz2.com/c/202927/184902 gaming jobs
https://jvz6.com/c/202927/88118 backlinkindexer
https://jvz1.com/c/202927/376361 powrsuite
https://jvz3.com/c/202927/370472 tubeserp
https://jvz4.com/c/202927/343405 PR Rage
https://jvz6.com/c/202927/371547 design beast
https://jvz3.com/c/202927/376879 commission smasher
https://jvz2.com/c/202927/376925 MT4Code System
https://jvz6.com/c/202927/375959 viral dash
https://jvz1.com/c/202927/376527 coursova
https://jvz4.com/c/202927/144349 fanpage
https://jvz1.com/c/202927/376877 forex expert
https://jvz6.com/c/202927/374258 appointomatic
https://jvz2.com/c/202927/377003 woocommerce
https://jvz6.com/c/202927/377005 domainname
https://jvz8.com/c/202927/376842 maxslides
https://jvz8.com/c/202927/376381 ada leadz
https://jvz2.com/c/202927/333637 eyeslick
https://jvz1.com/c/202927/376986 creaitecontentcreator
https://jvz4.com/c/202927/376095 vidcentric
https://jvz1.com/c/202927/374965 studioninja
https://jvz6.com/c/202927/374934 marketingblocks
https://jvz3.com/c/202927/372682 clipsreel
https://jvz2.com/c/202927/372916 VideoEnginePro
https://jvz1.com/c/202927/144577 BarclaysForexExpert
https://jvz8.com/c/202927/370806 Clientfinda
https://jvz3.com/c/202927/375550 Talkingfaces
https://jvz1.com/c/202927/370769 IMSyndicator
https://jvz6.com/c/202927/283867 SqribbleEbook
https://jvz8.com/c/202927/376524 superbackdrop
https://jvz8.com/c/202927/376849 VirtualReel
https://jvz2.com/c/202927/369837 MarketPresso
https://jvz1.com/c/202927/342854 voiceBuddy
https://jvz6.com/c/202927/377211 tubeTargeter
https://jvz6.com/c/202927/377557 InstantWebsiteBundle
https://jvz6.com/c/202927/368736 soronity
https://jvz2.com/c/202927/337292 DFY Suite 3.0 Agency+ information
https://jvz8.com/c/202927/291061 VideoRobot Enterprise
https://jvz8.com/c/202927/327447 Klippyo Kreators
https://jvz8.com/c/202927/324615 ChatterPal Commercial
https://jvz8.com/c/202927/299907 WP GDPR Fix Elite Unltd Sites
https://jvz8.com/c/202927/328172 EngagerMate
https://jvz3.com/c/202927/342585 VidSnatcher Commercial
https://jvz3.com/c/202927/292919 myMailIt
https://jvz3.com/c/202927/320972 Storymate Luxury Edition
https://jvz2.com/c/202927/320466 iTraffic X – Platinum Edition
https://jvz2.com/c/202927/330783 Content Gorilla One-time
https://jvz2.com/c/202927/301402 Push Button Traffic 3.0 – Brand New
https://jvz2.com/c/202927/321987 SociCake Commercial
https://jvz2.com/c/202927/289944 The Internet Marketing
https://jvz2.com/c/202927/297271 Designa Suite License
https://jvz2.com/c/202927/310335 XFUNNELS FE Commercial
https://jvz2.com/c/202927/291955 ShopABot
https://jvz2.com/c/202927/312692 Inboxr
https://jvz2.com/c/202927/343635 MediaCloudPro 2.0 – Agency
https://jvz2.com/c/202927/353558 MyTrafficJacker 2.0 Pro+
https://jvz2.com/c/202927/365061 AIWA Commercial
https://jvz2.com/c/202927/357201 Toon Video Maker Premium
https://jvz2.com/c/202927/351754 Steven Alvey’s Signature Series
https://jvz2.com/c/202927/344541 Fade To Black
https://jvz2.com/c/202927/290487 Adsense Machine
https://jvz2.com/c/202927/315596 Diddly Pay’s DLCM DFY Club
https://jvz2.com/c/202927/355249 CourseReel Professional
https://jvz2.com/c/202927/309649 SociJam System
https://jvz2.com/c/202927/263380 360Apps Certification
https://jvz2.com/c/202927/359468 LocalAgencyBox
https://jvz2.com/c/202927/377557 Instant Website Bundle
https://jvz2.com/c/202927/377194 GMB Magic Content
https://jvz2.com/c/202927/376962 PlayerNeos VR
https://jvz8.com/c/202927/381812/ BrandElevate Bundle information
https://jvz4.com/c/202927/381807/ BrandElevate Ultimate
https://jvz2.com/c/202927/381556/ WowBackgraounds Plus
https://jvz4.com/c/202927/381689/ Your3DPal Ultimate
https://jvz2.com/c/202927/380877/ BigAudio Club Fast Pass
https://jvz3.com/c/202927/379998/ Podcast Masterclass
https://jvz3.com/c/202927/366537/ VideoGameSuite Exclusive
https://jvz8.com/c/202927/381148/ AffiliateMatic
https://jvzoo.com/c/202927/381179 YTSuite Advanced
https://jvz1.com/c/202927/381749/ Xinemax 2.0 Commercial
https://jvzoo.com/c/202927/382455 Living An Intentional Life
https://jvzoo.com/c/202927/381812 BrandElevate Bundle
https://jvzoo.com/c/202927/381935 Ezy MultiStores
https://jvz2.com/c/202927/381194/ DFY Suite 4.0 Agency
https://jvzoo.com/c/202927/381761 ReVideo
https://jvz4.com/c/202927/381976/ AppOwls Bundle
https://jvz8.com/c/202927/381950/ TrafficForU
https://jvz3.com/c/202927/381615/ WOW Backgrounds 2.0
https://jvz4.com/c/202927/381560 ALL-in-One HD Stock Bundle
https://jvz6.com/c/202927/382326/ Viddeyo Bundle
https://jvz8.com/c/202927/381617/ The Forex Joustar
https://jvz3.com/c/202927/383751/ ADA Web Accessibility Compliance
https://jvz3.com/c/202927/383942/ 10 Bold Actions In Positive Life & Work
https://jvz3.com/c/202927/383706/ Adtivate Agency
https://jvz1.com/c/202927/384099/ My Passive Income Blueprints
https://jvz3.com/c/202927/329145/ Content Tool Kit
https://jvz6.com/c/202927/382663/ ReviewReel
https://jvz3.com/c/202927/383940/ QR Verse Bundle
https://jvz4.com/c/202927/379307/ VIADZ Ad Template
https://jvz2.com/c/202927/383051/ EngageYard Ad Creator
https://jvz4.com/c/202927/381011/ Videevolve
https://jvz4.com/c/202927/383751/ Local Leader Bundle
https://jvz8.com/c/202927/383119/ Tonai Voice Content
https://jvz2.com/c/202927/383848/ Vocalic Commercial
https://jvz3.com/c/202927/383483/ Dropshiply Store Creator