Tech Layoffs 2024: Beginning a New Chapter After the Storm

During 2023, the tech and financial sectors, once the darlings of the economy, were suddenly facing a harsh reality: layoffs. From tech giants like Google and Meta to Wall Street titans like Goldman Sachs, Morgan Stanley and Citigroup, pink slips were raining down, leaving a trail of uncertainty and anxiety in their wake. During the year the tech sector shed over 240,000 jobs. Entering 2024, the tech wreck seems set to continue. January 2024 witnessed 82,000 layoffs in tech and financial sectors suggesting the layoff train is moving full speed ahead. This is despite a robust labor market, strong economic growth and the Nasdaq and S&P at all-time highs. For those affected, the human cost of this economic readjustment is undeniable. The good news is that options exist. In this blog post we look at tech layoff trends in 2024 and those in other sectors in 2024. More importantly our team at ClearSky 2100 Ventures presents a range of solutions to help you quickly jump back in the game. We’ll delve into the following solutions (Udacity, Boast.ai, OrangeDox, Teachable, Creators Legal, Law Depot, Alliance Virtual Offices, Firstbase.io and Freshworks) and provide a step-by-step process on how to leverage these platforms for success. For anyone impacted by tech layoffs 2024, these solutions should be an essential part of your career toolkit as you pivot in new directions beginning a new chapter after the storm.     

The Perfect Storm: Why the Boom Went Bust 

To understand current job trends, we need to go back to the boom that occurred during the Covid-19 pandemic. By 2022 the pandemic-induced surge in tech demand subsided, revealing over-hiring in some areas. Companies are now right-sizing their workforces to match the new, post-pandemic reality. The convergence of rightsizing initiatives and the rise of AI continues to create a fluid and uncertain employment outlook in tech and many other sectors across the global economy. It’s still unclear if ChatGPT and the plethora of recent AI solutions will create a net positive for jobs. However, we do expect to see more worker independence but only time will tell.

Employee Growth in Tech Sector 2019-2022

Source: Securities and Exchange Commission, CNN

Since the beginning of 2024, layoffs have resumed across all organizations e.g. large corporates, startups, etc. According to the Wall Street Journal, and Layoffs.fyi the list of notable tech layoffs and those in other sectors include: 

Tech Layoffs 2024

• Estee Lauder Layoffs: 3,100 jobs or 5% of its workforce  
• e-Bay Layoffs: 1,000 jobs or 9% of its workforce 
• Paypal Layoffs: 2,500 jobs or 9% of its workforce
• Spotify Layoffs: 1,500 jobs or 17% of its workforce
• Xerox Layoffs: 1,150 jobs 5% of its workforce 
• Vroom Layoffs: 800 or 90% of its workforce
• Salesforce Layoffs: 700 or 1% of its workforce
• Snap Layoffs: 530 jobs or 10% of its workforce 
• Twitch Layoffs: 500 jobs of 35% of its workforce 
• Citigroup Layoffs: 23,000 jobs by 2026 

Weathering the Storm: Creating Options

Getting the dreaded call or email can be devastating as in many cases it occurs without warning. Fortunately, most employees are given a window, albeit short, to prepare. Don’t see this as a doom and gloom scenario but use the time as an opportunity to prepare for the next chapter of your professional development. More practically, assess your financial position and obligations, and update your resume. While the current situation may seem undoubtedly challenging, opportunities abound to chart new directions in your career. For those up to the task, consider options as entrepreneurs or solopreneurs.

In 2023, the growth in independent workers continued and accounted for 45% of the US workforce, or 72.1 million workers. This represented 89% growth between 2020 and 2023. Further breakdown of these numbers reveals some interesting insights. For example, during the same three-year period:

• Occasional independent workers grew 132%
• Full-time independent workers grew 91%
• Part-time independent workers grew 8%

As you think about your next move, going solo or building your own venture may be the right path for you. However, taking a strategic and thoughtful approach to build out is essential to avoid the pitfalls of failure. Whatever ideas you have e.g. content creator, there is a path to creating value. Whether you are a Baby Boomer in retirement or a GenZer, options do exist. We provide several steps and solutions to put you on the right track so let’s get started.

Step 1: Establish Your Platform

The first step is to establish your business and secure your infrastructure. There are several solutions to choose from. We’ve recommended a few essential ones below including Firstbase.io, Alliance Virtual Offices, Law Depot, and Creators Legal.

Firstbase.io – Registering Your Company

Firstbase.io assists founders and entrepreneurs in launching, managing, and growing businesses online. Key advantages of Firstbase.io include:

• Incorporation Made Easy: Firstbase.io streamlines the startup incorporation process, allowing founders to focus on business growth and key operational matters. For both US based and international individuals and organization, the company provides various US jurisdictions for incorporation including, Wyoming, Delaware, etc.
• Banking and Compliance: Firstbase.io handles the administrative burden including bank account and EIN (for foreign entities) and compliance management e.g. tax filing, annual reports, etc.
• Growth Solutions: The company has partnered with a range of solutions offering a 1-click suite of growth tools for payment processing, bookkeeping and global payroll.

Alliance Virtual Offices – Flexible Infrastructure Anywhere

Alliance Virtual Offices provides premium virtual office and co-working solutions for companies worldwide. Demand for versatile workspaces is expected to experience strong growth in line with the growth of the independent workers. Alliance’s unique approach combines three central components necessary to serve mobile and work-from-home professionals: People, Place, and Technology. Key advantages of Alliance Virtual Offices include:

• Flexibility & Affordability: Alliance Virtual Offices empowers remote companies and home-based professionals to thrive by offering flexible workspace solutions. Thier solutions offering encompasses basic virtual offices to co-working spaces and fixed offices. From an office address with phone number and receptionist to a more permanent location the solutions are designed to accommodate various needs. VO and co-working spaces offer substantial cost reductions versus fixed office space. In particular, sectors and companies benefiting from Alliance Virtual Offices include independent real estate and insurance brokers, trucking, freelancers, charities and startups.
• Global Presence: In addition to the US, the company provides flexible office solutions in over 1,400 locations worldwide, enabling you to unlock global growth opportunities and boost your brand. International locations include United Kingdom, Brazil, Australia, Mexico, India, United Arab Emirates, etc.
• Robust Solutions Marketplace: Customers of Alliance have access to a robust business solutions marketplace providing a range of offerings such as Accounting & Marketing, Business Formation, Insurance, Legal Documents & Services, and Business Credit Building.

Law Depot – Reducing SME Costs

Law Depot is a comprehensive and affordable online legal solution providing legal documents, forms, and contracts to businesses. The company addresses several pain points experienced by small business owners including, high cost of legal services to address key business bottlenecks such as intellectual property protection, contractual agreements, regulatory compliance, and employment and labor law, etc. Key advantages of Law Depot include:

• Contract Templates: Law Depot provides a robust number of legally binding contract templates covering a wide range of needs including online notary, real estate, company formation, loan agreements and standard confidentiality agreements.
• User-Friendly Interface: Their easy-to-use form builder simplifies the contract creation process with a set of questions tailored to the legal framework specific to your jurisdiction.
• Global Presence: Law Depot offers solutions across a range of countries including, Australia, Canada, Germany, India, Nigeria, Mexico and Spain.

Creators Legal – Protecting Content

Creators Legal is a legal services provider specializing in assisting content creators, such as artists, musicians, writers, podcasters, and independent filmmakers, with their intellectual property and entertainment law needs.  Key advantages of Creators Legal include:

• Contract Management System: The company offers a contract management system for content creators, including legal contract generation, e-signatures, and contract organization.
• Comprehensive Creator Coverage: The company’s solutions cover a broad swath of the content creator ecosystem, including podcasters, filmmakers, independent musicians, television providers, documentaries and much more
• Creators Corner: A wealth of resources and information providing insights for content creators to understand the industry and their rights better.

Boast.ai – R&D Intelligence & Tax Credits

Boast.ai develops software to automate the process of claiming R&D tax credits in the US and Canada. The company has already helped thousands of companies in the US and Canada to streamline the R&D tax credit application process, helping them get larger resulting in larger claims, lower risk, and time savings. Key advantages of Boast.ai include:

• Automated Tax Credit Claims: Boast.ai streamlines the complex process of claiming R&D tax credits savings for startups, midmarket and enterprise level organizations.
• Data-Driven Approach: Boast.ai integrates with your technical and financial systems to categorize tickets, provide accurate time-evidence data, prepare claims, and generates audit defense reports.
• Lending Program: The company’s Quick Fund program allows companies to claim a percentage of their R&D refund early for redeployment into the business.

Step 2: Upskilling and Reskilling

You may have a great idea to build on but lack the skills and understanding. In tech and other sectors competitive intensity is increasing and the in demand skills continue to evolve. Whether you decide to continue on the corporate track or start your own business, futureproofing knowledge and skills is a must.

Udacity – Futureproofing Skills

Udacity is a global leader in massive open online courses (MOOCs) providers space The company’s community stands around 17 million with course offerings in 240 countries Key advantages of Udacity include:

• Customization: Udacity provides tailored learning experiences, allowing students to choose courses relevant to their career goals, particularly those in need of upskilling and reskilling.
• Industry-Relevant Content: Their courses are designed in collaboration with industry experts, ensuring practical knowledge and skills. A range of business and technology courses are available in areas such as Artificial Intelligence, programming, digital marketing and advertising, and product marketing.
• Nanodegrees: Udacity offers specialized nanodegree programs that enhance employability offering unique online educational offering designed to bridge the gap between learning and career goals. These programs are developed in conjunction with and valued by leading companies such as Google, AT&T, Facebook and companies in other sectors across the global economy.

Step 3: Capturing Opportunities

Once you’ve addressed the fundamentals of getting started, e.g. incorporation, securing office space and addressing the core legal matters, now comes the fun part, offering products and services and capturing customers. We offer some useful solutions below.  

Freshworks – CRM & Customer Success

Freshworks is a leader in cloud-based customer relationship management (CRM) solutions. They provide cloud-based tools for customer relationship management (CRM) and IT service management (ITSM) boasting over 60,000 clients in more than 100 countries. Freshworks aims to make the world of work faster, easier, and more human through a sleek user interface and a comprehensive set of solutions. Key advantages of Freshworks includes:

• Customizable Solutions: Freshworks offers a broad range of solutions to enhance customer engagement, simplifying the sales management process, and maximizing customer conversions. Freshworks 360 Customer solutions are a suite of core solutions including Freshsales (CRM), Freshchat (Customer Messaging) and Freshmarketer (converion optimization).
• Expansive Solutions Marketplace: The company maintains an expansive marketplace of over 1,000 apps that can integrate with the Freshworks product suite. The company supports integrations with Microsoft 365, Google Workspace, Slack, HubSpot, etc.
• Freddy AI: Their AI-powered assistant, Freddy, is the ultimate AI copilot with a rich set of features including conversation summarizer, auto ticket triage, quality coach, tone enhancer all designed to enhancing customer relationships and energizing employees.

Teachable – Monetizing Your Passion

Teachable is a platform that helps creators to engage online audiences and monetize their passion. The company serves a community of over 18 million providing over 200,000 courses.  Key advantages of Teachable include:

• Ease of Use: Teachable simplifies course creation, making it accessible even for non-technical creators.  
• Customization: Creators can brand their courses, set pricing, and control content delivery across a range of industries e.g., marketing and business, health and fitness, personal development, languages, fashion and beauty and software and technology, etc.
• Monetization: Teachable enables creators to earn revenue by selling their expertise with a range of pricing models from basic memberships to a Pro+ offering.

OrangeDox – Secure Document Management

OrangeDox  is a cloud-based document management platform integrated with Google Drive and Dropbox that can help companies of all sizes share secure and confidential information affordably. Presently, Microsoft 365 integration is not supported but Office file formats are. Key advantages of OrangeDox including: 

• Advanced Security and Affordability: OrangeDox allows users to monitor who views their shared files, enhancing security and accountability. Users can control viewing and downloading privileges by passcode, email or device.
• Integration and Ease of Use: Seamlessly integrated with Google Drive and Dropbox making it convenient for users who rely on cloud storage. There are no file uploads or storage restrictions as the files are always synced with Google Drive. They also support a range of file formats including spreadsheets, presentation, video and audio.  
• Diverse Use Cases: The OrangeDox platform supports various use cases from financial due diligence, fundraising to marketing, sales, education, and training

Conclusion: More Tech Layoffs Ahead

The recent and ongoing layoffs in the tech and financial sectors are a stark reminder of the complex and ever-shifting nature of the US and global economic landscape. It appears as if 2024 is shaping up to mirror 2023’s performance. While the causes are multifaceted and the human cost undeniable, understanding the challenges and exploring potential solutions is the first step towards building a more resilient future. By empowering individuals with a range of solutions to move beyond the storm and start a new chapter in their careers, those impacted can successfully navigate this period of change and ensure a future leaving no one behind. 

To learn more about the recommended solutions discussed in our blog get in touch with our team at ClearSky 2100 Ventures. Be sure to follow us on LinkedIn and YouTube. 

Disclosure: At ClearSky 2100, our portfolio partly consists of affiliate partnerships.  We may earn a small commission from buying links on our site at no cost to you.