Alten Capital’s focus on business services and technology services companies makes us examine the talent market, especially for technology professionals.
We saw a spike in tech layoff announcements in early 2023, and we started tracking this data from Layoffs.fyi (https://layoffs.fyi/). Below is a Q2 update.
Q1 2023 seems to have been a peak in tech layoff announcements worldwide, as Q2 shows less than 30% of employees laid off (~44,000 in Q2 vs. ~160,000 in Q1) from roughly half the number of companies (~270 in Q2 vs. ~590 in Q1). The absolute numbers may be off month-to-month and quarter-to-quarter, but the data trends are relevant and can be insightful.
Our Q1 update (https://alten.capital/blog/tech-layoffs-q1-update) mentioned that the tech industry typically reacts promptly to macro changes. This was reflected in quick actions to right-size their teams in Q1 based on macro headlines vs. Q2, which showed less layoff activity.
On a monthly basis, we have seen a lower number of tech employees laid off every month since January 2023. The trend is encouraging.
Overall, unemployment in the US ticked up from 3.5% at the end of Q1 to 3.7% currently. Employment continues to be solid.
In summary, organizations continued to scale back their right-sizing plans during Q2. At Alten Capital we focus on scaling talent-based business services and technology services companies. Please reach out to us to explore partnership opportunities.