Layoffs, hiring freeze, cost cutting, revenue slowdown coupled with a market sell off - after a 13-year-long bull run, gloom seems to have set in as tech companies grapple with a floundering economic outlook.
The winter everybody was alluding to finally seems to be here. Over the last few days, the world's largest tech companies have been saying sorry to employees — for firing them at a time when the conversation has firmly moved from managing growth to surviving a recession.
From Meta to Twitter to Stripe and Snap — more than 52,000 workers in the US tech sector have been laid off, according to a Crunchbase tally and more pain is expected in the next quarter of the financial year. Google, Apple, Microsoft and Amazon are tightening their belts as they reassess the market scenario.
Startups have not been immune to this meltdown as funding has dried up. Global venture capital funding hit a 9-quarter low in Q3 with the largest quarterly drop in a decade, as per CB Insights.
The tremors have reached India as well with funding falling to a two-year low in the September quarter.
In fact, Indian startups have handed pink slips to more than 17,000 employees so far this year.
The agony is palpable with some on the startup street saying that 2023 could be a dot-com level bruiser, something that most young tech founders have not experienced.
CNBC-TV18 spoke to Priya Rajan, Managing Director of Silicon Valley Bank; Sanjay Nath, Co-Founder & Managing Partner of Blume Ventures and Will Poole, Co-Founder & Managing Partner of Unitus Ventures & Capria Ventures to discuss what the global tech tumble bodes for India’s startup economy and what should be the playbook for 2023.
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