U.S. startups laid off more than 3,000 employees in January — a 1,700% increase from the same month last year 1

Startup Layoffs Soar: U.S. Startups Shed Over 3,000 Employees in January, a 1700% Increase from 2020

More than 3,000 startup employees were laid off in January. Getty Images

  • Economic uncertainty has prompted a wave of layoffs in the tech industry.

  • After the 2021 venture capital investment boom, startups are cutting costs and shedding jobs.

  • More than 3,000 employees at US startups lost their jobs in January, according to data from Layoffs.fyi.

Economists may still be debating whether or not the US will enter a recession, but for the tech industry, the retreat is well underway.

Layoffs have dominated the headlines since late 2022, with big tech giants like Google, Meta and Amazon announcing the layoffs of thousands of employees.

The startup world has also taken a big hit: U.S. startups — categorized as companies that have raised at least seed funding and up to Series J funding — laid off over 3,000 employees in January, according to data from Layoffs.fyi. Layoff amounts for some companies were not available. In contrast, in January 2022, only about 180 startup employees faced layoffs.

That’s a roughly 1,700% increase in job cuts year over year — a clear example of how the economic outlook for tech has changed over the past 12 months.

Many of these companies raised large amounts of venture capital prior to the market crash. While 2021 was a record year for venture capital investments, late in the year 2022 saw a sharp drop in deals and many startups struggled to raise more funds.

This has contributed to a wave of cost cutting across the industry. In the first month of 2023, 62 US startups laid off staff. And the job cuts have continued into February, with corporate unicorns Clari and Workato cutting their workforce.

Here’s the full list of US startups that made layoffs in January, according to Layoffs.fyi data.

Pursue

Industry

Impossible Foods

consumer

oyster

human resources

Top notch trust

crypto

CoinTracker

crypto

Robust

consumer

Respectable

health and wellness

Nate

consumer

DriveWealth

fintech

Plus One Robotics

logistics

rate

consumer

SirionLabs

Pursue

care rev

health and wellness

noom

health and wellness

Innovaccer

health and wellness

bolt

fintech

For health

health and wellness

Corvus Insurance

Insurance

symbol

construction

ermetic

Pursue

Vox Media

media

Citrine Informatics

Artificial intelligence

Cyteir Therapeutics

biotech

advise tomorrow

Pursue

Hubilo

Pursue

hydrow

health and wellness

fanbase

media

prism

Pursue

jump cloud

Pursue

addpar

fintech

Cypress.io

Pursue

Luxurious presence

property

snappy

Pursue

vial

health tech

archoncology

biotech

jellyfish

Pursue

Green light

fintech

Career Karma

edtech

grid

human resources

Rocking content

marketing

flexport

logistics

Tipalti

fintech

Embark

health tech

Citizens

consumer

Map

human resources

lemonade

human resources

ConsenSys

crypto

Parler

consumer

100 thieves

consumer

espers

Pursue

Oops

health and wellness

scale AI

Artificial intelligence

carbon health

health tech

Consciously

Pursue

Lantern

consumer

mojo vision

Hardware

Very rare

crypto

secure

fintech

genesis

crypto

Attentive

marketing

astronomer

Pursue

augur

manufacturing

Uniphor

Artificial intelligence

Read the original article on Business Insider

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