However, the number of employees who have lost their jobs is the lowest since “the market reset” that the sector suffered in mid-2022, according to data collected by PitchBook and the layoffs.fyi platform.
During October of this year, 33 technology companies laid off just over 3,000 people, a significantly lower figure compared to the more than 8,000 employees affected in the same month of 2023.
On the other hand, the third quarter of 2024 was the period in which the fewest companies carried out layoffs. In total there were 123 companies, which represents a decrease of 45% compared to the same period last year and it is a trend that has been decreasing throughout the year.
Until now, the quarter in which the most companies fired their staff was the first of 2023, with 585 companies affected. Then follows the fourth period of 2022, with 475; and in third place the third of 2022, with 413 companies that had to resort to eliminating personnel.
AI attracts venture investors
PitchBook analyst Rosie Bradbury highlighted that in the summer of 2022, fundraising for tech startups plummeted as venture investors slashed spending, leading to sharp workforce reductions around the world. .
On the part of large companies, layoffs were also related to the fact that they hired too many staff during the pandemic who worked remotely, something that no longer connected with their quest for profitability.
However, Bradbury pointed out that at this time innovations in the world of technology, such as Artificial Intelligence, are causing investors to once again view companies in the sector with confidence.
“The rise of AI (and the advances in business efficiency thanks to its tools) have brought venture investors back to the fundraising table,” shared the specialist.
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