Layoffs round 2

There is now a second round of layoffs from U.S. technology companies like Twilio (1500 people or 17 % layoff, following 11 % in September 2022) and Docusign (700 people or 10 % layoff, following 9 % in September 2022). To me it signals that they are going from managing expenses to getting serious about becoming profitable. To become profitable a total of at least 20-30 % reduction in staff is almost always needed. Given the sentiment in the stock market about value of profitability it is no surprise that a second round of layoffs is here.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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