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Why are well-funded startups beginning layoffs?

Startup layoffs are not a new phenomenon, they have been a regular part of the start-up life cycle and not just a symptom of shrinking startup funding.

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Why are well-funded startups beginning layoffs?

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  1. WHY ARE WELL-FUNDED STARTUPS BEGINNING LAYOFFS? www.desertcart.in

  2. WHY ARE WELL-FUNDED STARTUPS BEGINNING LAYOFFS? Startup layoffs are not a new phenomenon, they have been a regular part of the start-up life cycle and not just a symptom of shrinking startup funding. www.desertcart.in

  3. WHY ARE WELL-FUNDED STARTUPS BEGINNING LAYOFFS? Experts are now flagging concerns over the speed at which companies are rationalizing their business verticals and burn rates by trimming down their workforce and certain startups firing employees. www.desertcart.in

  4. WHY ARE WELL-FUNDED STARTUPS BEGINNING LAYOFFS? It may even result in consolidation and an increase in demand for venture debt. The following are some of the reasons; why startup firms are firing employees. www.desertcart.in

  5. THE CONSOLIDATION PHASE At some point in time, most startups around the world will usually face a funding crunch. In a market that has witnessed an upsurge in high-potential startups, cash flow becomes crucial and all companies need to have a good plan in place to tackle such situations. www.desertcart.in

  6. THE CONSOLIDATION PHASE The big question right now is, how many of these startups will survive and learn from their mistakes? At some point or the other, every startup in the world will face some kind of funding crunch. www.desertcart.in

  7. THE CONSOLIDATION PHASE Some firms are firing employees in 2022 due to reasons like business slowdown due to the Ukraine and Russia war and other macroeconomic factors. www.desertcart.in

  8. THE CONSOLIDATION PHASE Other reasons include business slowdown and the duplicity of talent since the companies had taken over several smaller companies and hence they need to consolidate by reducing excess manpower and especially unproductive employees and excess people having similar skills. The companies also reduce expenditure by spending less on additional stationery products and equipment like computers and office furniture. www.desertcart.in

  9. IMPACT OF CORONAVIRUS (COVID-19) The Covid-19 pandemic situation has had a devastating effect on different types of businesses around the world. www.desertcart.in

  10. IMPACT OF CORONAVIRUS (COVID-19) While there is still hope that we can recover from the consequences of this pandemic, there is no doubt that businesses continue to suffer for some more time. It is not yet clear how long this crisis will last, or how much damage it will do to the economy as a whole. www.desertcart.in

  11. IMPACT OF CORONAVIRUS (COVID-19) While the biggest impact of Covid-19 has been felt in the travel, hotel, and tourism industry as well as in healthcare, certain sectors have also been affected by this economic slowdown. www.desertcart.in

  12. IMPACT OF CORONAVIRUS (COVID-19) With companies laying off more than 100 employees at once, the need for reskilling and rebranding has never been higher; especially for professionals looking to find new jobs in startups. www.desertcart.in

  13. DO SUDDEN LAYOFFS AFFECT THE COMPANY’S BRAND IMAGE? Sudden layoffs, which come with no prior information or post-information, definitely impact employer brands. It puts fear in both existing and future employees, and results in negative comments on team member feedback sites like Glassdoor, severely impacting the employer's reputation as a good employer. www.desertcart.in

  14. DO SUDDEN LAYOFFS AFFECT THE COMPANY’S BRAND IMAGE? A well-funded company is expected to do its planning and preparations perfectly. Sudden layoffs generally demonstrate a lack of proper planning and strategic goal setting. However, many layoffs are usually initiated by non-strategic investors, who are only interested in the short term due to a myopic view. www.desertcart.in

  15. DO SUDDEN LAYOFFS AFFECT THE COMPANY’S BRAND IMAGE? However, the ultimate responsibility lies with the investee company. The existing employees too may begin to feel insecure and restless; when companies initiate layoffs. There is a general sense of despair and demotivation that affects the entire business. www.desertcart.in

  16. THANK YOU! You can find us at twitter @desertcartmena & support@desertcart.com www.desertcart.in

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