American tech companies -particularly startups- have begun laying off employees on a large scale as rising interest rates dry up venture capital, sending the stock markets tumbling.
As many as 16,800 tech workers were given pink slips in May alone, according to layoffs.fye, a tech job tracking site.
May was the worst month for tech employees compared with the other four months of 2022, during which 13,600 lost their jobs.
Companies firing employees on a large scale are those that fought a fierce battle for talent in 2021, when the demand for digital services soared suddenly following the imposition of social distancing measures.
The declining demand for digital services is visible in the stock markets. The tech-heavy Nasdaq Composite Index has shrunk more than 23% this year.
Startups shedding employees include the likes of Robinhood, Glossier, Clickup, Lacework, Bolt and Better, according to Crunchbase. Lacework laid off 200 employees (20% of its workforce), while Bolt trimmed more than 32% of its headcount.
Other startups handed out far more pink slips. Automative e-commerce services vendor Carvana, for example, laid off as many as 2,500 workers, while fintech Better sent out 5,000 employees, nearly 50% of its workforce.