Startups Hit Hard By Tech Titans’ Agressive Recruitment Tactics

A worldwide tech talent shortage is crippling startups.

Even with widespread tech layoffs seen across the US in late 2023, the talent drought has resurfaced to haunt organizations of all sorts. Smaller players have been particularly hit by the shortage, as they’re unable to compete directly with the aggressive tactics used by industry giants to lock skilled professionals.

Tech companies are once again locked in a fierce competition for talent, wielding million-dollar compensation packages and poaching entire teams.  According to a Wall Street Journal report, “they are competing against each other and against startups vying to disrupt them.”

The dwindling venture capital funds in Silicon Valley is making the landscape even more difficult to navigate for startups.

Scarcity seems to be more pronounced in the realm of generative AI, according to the WSJ report. European firms are having a lot of trouble too. German startup Pixel Photonics, for example, received zero applications from the continent despite extensive advertising.

The struggle extends beyond Europe and the US. An NTT Data study revealed that 20% of Latin American companies grapple with access to AI specialists.

Furthermore, over 16% of surveyed organizations reported delays in integrating AI due to talent shortages.