Layoffs have hit the tech sector, and it’s a lot different than it was in 2020

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Deja Leonard is a freelance copywriter and journalist based in Calgary.

Recession fears are growing and tech companies across North America are bracing for a downturn with hiring freezes and layoffs.

According to Layoffs.fyi, a website that tracks layoffs in the tech sector, nearly 17,000 workers from more than 70 tech startups around the world were laid off in May 2022. This number represents a 350 percent increase from April, the largest number Technical jobs lost since May 2020

While many of the current layoffs are coming from US companies, industry watchers say Canada’s tech sector will be hit hard and that staff cuts have already begun.

On Wednesday, June 15, Michael Katchen, co-founder of Canadian fintech company Wealthsimple, posted an announcement on his LinkedIn page titled “Important Changes in Our Business.”

The public memo continues to address the Wealthsimple team and layoffs.

“Today, communicating the news in our whole meeting was much more difficult. For those who did not attend the meeting, I announced that due to changes in market conditions, we have made the difficult decision to reduce the size of Wealthsimple’s workforce,” wrote Mr. Katchen.

Wealthsimple was laying off 159 of its 1,262 employees.

“Our goal is to provide clarity to all of you as soon as possible. In the next few minutes, team members leaving Wealthsimple will receive a calendar invitation to attend today’s scheduled departure meeting,” the note continued.

However, TechCrunch’s Natasha Mascarenhas said there is a key difference between the 2020 pandemic-related layoffs and what we’re seeing now.

“The difference between the layoffs in 2022 and 2020 is that many of the companies that are laying off employees today are well-capitalized, and their unicorn was called only a year ago. In 2020, the cuts can easily be attributed to an unprecedented pandemic that has complicated growth plans; While in 2022, the cuts came right after leaders boasted of insane growth just months earlier,” Mascarenhas wrote.

Wealth coach These layoffs have been “a long time to come” since we’ve seen our economy go through many changes in the past few years, said Mandy Woodruff Santos, who has been covering business and finance for more than a decade.

It also provided insight into the bigger picture of what is happening in the industry.

“We lost a few thousand jobs in tech, but we also added 16,000 jobs in tech, OK? There are thousands more in IT — and that’s coming from sites like Glassdoor. It’s recording a 50 percent increase in tech,” she said on Yahoo Finance Live. cent in new job ads.

Regardless, there is still uncertainty for many tech workers right now. Employees can try to lay off workers by updating their resumes as soon as possible, starting an emergency fund and researching their company’s policy for termination packages so they are aware of what the reality will be if they are laid off.

What I read on the web

  • As more companies solidify their approach to work, a new study from the Canadian Family Perspective on Prosperity Project shares some interesting insights, including that 63 percent of women said they would turn down promotions if it meant they could continue to work from home.
  • According to this article, there may be a new position in the store on premises: Head of Remote. The article says that the intricacies of navigating a remote work force should not be left to HR, and that this new position can help remote and in-person employees by designing an effective hybrid work program.
  • Do you find yourself eating lunch from your desk or working during breaks when you know you have to walk away? Here are 24 ways you can spend your lunch hour feeling refreshed and ready to focus for the afternoon.
  • Did you know that offering a business study of diversity can actually backfire? A recent study showed that this approach may be less effective than expected because underrepresented job candidates may interpret associating diversity with the end result as a means to an end versus an ethical decision.

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