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  • Writer's pictureICMSS

Startups: Unprofitability-Prompted Layoff

The wave of layoffs has impacted numerous startups worldwide, sweeping away thousands of people from the workforce. According to the aggregator report, the number of employees affected by the policy exceeded 15,000 in May 2022. These conditions impacted a wide range of sectors in the digital industry. Vtex, an Enterprise Digital Commerce Platform, happened to lay off 193 employees, approximately 13% of the team comprises. Geraldo Thomas and Mariano Gomide de Faria, co-founders and co-CEOs of Vtex, stated that the world is changing rapidly, and their decision to lay off employees was taken as a strategic plan to adapt. The e-commerce company assured investment for talent development will remain secured, and no further layoffs will occur. The same occurrence happened to Paypal, an American multinational financial technology company; 83 workers were laid off from over 30,000. The decision was made to assess their work to fulfill customer satisfaction and operate with the best structures and procedures to support Paypal's strategic business priorities as it grows and evolves. On the other hand, the corporation did not mention filling positions or layoffs, instead stating that it will persist in recruiting. On the other side of the world, a Turkish quick commerce company, Getir, laid off 4,480 workers, or 14% of Getir's workforce, one of several companies impacted by startup layoffs worldwide. The Turkish quick commerce startup has also decided to slow down the recruitment process, marketing investment, and promotion of its services.

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