tech workers own firm: 63% of tech workers started their own firm after getting laid off: report

According to the report, nearly one in four tech workers couldn’t get hired by another company post-layoff.

The report included 1,000 surveyed tech workers who were laid off during the Covid-19 pandemic years and have since started their own companies.

About 93% of workers said they are now competing with the company that let them go.

Moreover, the report said the tech workers reported a yearly salary increase of $13,000 on an average after starting a company following the layoffs.

Around 58% of the tech workers who started a company after a layoff feel better about their new job security.

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Professional growth, more money, creating something new, leading others, being their own boss, difficulty in getting hired, and others were the top reasons tech workers decided to start a company after being laid off. Further, the report mentioned that for 40% of respondents, the idea to start a company came between 6 and 12 months after getting laid off.

Nearly one-third had their lightbulb moment even sooner – in under six months – and the rest took a year or more to decide that owning a business was the next logical step in their career.

A slowdown in consumer demand post the Covid-19 years and uncertain macroeconomic conditions triggered mass layoffs across major US tech firms over the past few months. This included massive retrenchment at Meta, Amazon, Microsoft, and Alphabet, among many others.

Indian startups, too, have been impacted over the last six months as they struggle to raise funds in a tough global environment.

ET reported on December 30 that fund-starved startups fired nearly 18,000 in 2022, according to data compiled by executive search firm Longhouse Consulting that was shared exclusively with ET.

Also Read | Layoffs in 2023: full list of companies that have announced job cuts amid economic downturn

According to the report, nearly one in four tech workers couldn’t get hired by another company post-layoff.

The report included 1,000 surveyed tech workers who were laid off during the Covid-19 pandemic years and have since started their own companies.

About 93% of workers said they are now competing with the company that let them go.

Moreover, the report said the tech workers reported a yearly salary increase of $13,000 on an average after starting a company following the layoffs.

Around 58% of the tech workers who started a company after a layoff feel better about their new job security.

Discover the stories of your interest

Professional growth, more money, creating something new, leading others, being their own boss, difficulty in getting hired, and others were the top reasons tech workers decided to start a company after being laid off. Further, the report mentioned that for 40% of respondents, the idea to start a company came between 6 and 12 months after getting laid off.

Nearly one-third had their lightbulb moment even sooner – in under six months – and the rest took a year or more to decide that owning a business was the next logical step in their career.

A slowdown in consumer demand post the Covid-19 years and uncertain macroeconomic conditions triggered mass layoffs across major US tech firms over the past few months. This included massive retrenchment at Meta, Amazon, Microsoft, and Alphabet, among many others.

Indian startups, too, have been impacted over the last six months as they struggle to raise funds in a tough global environment.

ET reported on December 30 that fund-starved startups fired nearly 18,000 in 2022, according to data compiled by executive search firm Longhouse Consulting that was shared exclusively with ET.

Also Read | Layoffs in 2023: full list of companies that have announced job cuts amid economic downturn