Startup layoffs mount amid market chill

The Business Times (Garage)

September 26, 2022

Original Source

SOUTH-EAST Asia's tech industry is bracing for more layoffs after several high-profile players retrenched workers in recent weeks, amid an increasingly uncertain environment and funding slowdown.

No longer able to stomach high cash burn, some investors have called on their portfolio startups to build cash runways of as much as 24 months. These companies are trimming staff as the quickest way to reduce costs.


Layoffs generally come from companies that were hiring more aggressively in the past years but now find themselves forced to be more financially prudent with the shift in market sentiment, said Adrian Goh, co-founder of tech hiring platform NodeFlair. He cited Sea and foodpanda as examples.


"In months to come, I wouldn't be surprised to see layoffs from startups that are burning cash and unprofitable, as well as those in the experimental divisions of the larger companies," said NodeFlair's Goh.