Layoffs Leave Startup Workers Feeling Defeated and Demoralized
In the uncertain world of startups, job security has always been a concern. However, employees are now feeling even more on edge as multiple rounds of layoffs are becoming increasingly common. Surviving one round of job cuts does not bring relief, but rather, anxiety about when the next layoff will occur. Samantha Stokes and Madeline Renbarger of Insider have spoken to employees who have lost confidence and faith in leadership due to these repeated layoffs.
While startups have always come with a risk-reward aspect, the past decade’s venture funding and high valuations have made it easy to overlook the risks. Working for a startup offers hands-on experience and the potential for substantial financial gain. However, the current downturn in the industry, coupled with a decrease in VC funding, has brought these risks to the forefront.
Employees have raised concerns about the uncertainty surrounding the layoffs. Severance packages can vary between rounds, causing confusion and fear. Lack of transparency from founders and leaders has also contributed to employees’ dissatisfaction. While leaders may put on a brave face, employees are left feeling kept in the dark, further eroding trust.
These experiences could have a lasting impact on the future generation of startups. It is possible that future founders will prioritize transparency in their management style, or that startups will make deeper initial cuts to avoid multiple rounds of layoffs in the short term.
In other news:
– JPMorgan CEO Jamie Dimon criticizes central bankers’ forecasting abilities, recommending a focus on “possibilities and probabilities” instead.
– Real-estate investors have a significant opportunity in building electric vehicle charging stations as commercial electric vehicles become more prevalent.
– Economist David Rosenberg warns against investor complacency, drawing parallels between the current economic climate and the conditions leading up to the 2008 financial crisis.
In the tech world:
– The process of buying a home has become more complicated with the rise of various startups trying to modernize the home-buying process.
– In an age of abundance and online shopping, experiences have become more valuable than physical items.
– Microsoft discontinues its AI-based drone simulation software, Project Airism, resulting in layoffs for the team.
In the business sphere:
– Former employees of Planet Fitness raise eyebrows over the CEO’s behavior, including keeping a keg in his office and making large cash withdrawals for personal travel.
– Snap’s ad business faces challenges as it loses advertisers to TikTok and grapples with the impact of Apple’s privacy feature.
– The pay for Uber and Lyft drivers varies widely due to different calculations, car expenses, and customer tips.
Additional news highlights:
– Baltimore PD’s handling of a convicted sex offender may have enabled him to commit murder.
– Court documents reveal the strange story of an off-duty pilot who attempted to turn off a plane’s engine mid-flight.
– IPA beer prices are expected to increase.
– Apple announces an event for the day before Halloween.
– New York City has lost 100,000 apartments as wealthy neighborhoods combine units.
– Google makes changes to its sales strategy.
Today’s Observances and Birthdays:
– World Pasta Day is being celebrated to highlight the health and sustainability attributes of pasta.
– It’s Ciara’s birthday, along with Katy Perry and Pablo Picasso.
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