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We surveyed 370+ people who have been laid off from startups. Key takeaways and graphs from the Awesome People List👇
Early-stage companies are buttoning up and moved quickly to lower burn. As the second-order impacts of COVID set in, I suspect we'll see more layoffs at later stage cos as they figure out their strategy, e.g. Nextdoor did layoffs today.
Teams are laying off in their growth teams. Marketing, sales (the second bar), and BD/partnerships took hard hits. Teams are forced to lower their CAC (that includes ppl) to achieve more favorable unit economics. It shows in the data.
Layoffs seem reasonably proportional to startup locations. Anecdotally, based on 20+ teams that I've talked to (not statistically sig), I think SF teams have been faster to course correct than NYC teams. Maybe bc their investors rang the alarm sooner? Maybe different speed DNA?
Many FT folks who were laid off are open to consulting. Nearly 50%. Another signal pointing to the shift to the freelancer economy and solopreneurship. This transition may happen faster than expected due to the overnight shift in talent supply/demand.
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