Alten Capital’s focus on technology services businesses guides us to look into talent markets, especially for technology professionals.
During the early part of 2023, we saw a spike in tech layoff announcements so we started to track this data from Layoffs.fyi (https://layoffs.fyi/). An update for Q3 is below.
We can now confirm that Q1 2023 was a peak in tech layoff announcements worldwide. Q3 is showing a further decline in announcements as compared to Q2 (~23,000 employees affected in Q3 versus ~46,000 in Q2). Fewer companies in Q3 announced layoffs as compared to Q2 as well. We are capturing this data some days prior to the end of the quarter so the numbers could be slightly off by month-end, but directionally correct.
Levels are not yet what we saw during 2021 and early 2022, but we continue to see a lower number of companies announcing layoffs and fewer tech employees affected every month this quarter. US unemployment ticked up from 3.7% in Q2 to 3.8% in August 2023, a solid statistic.
At Alten Capital we focus on investing and scaling technology services companies. Please reach out to us to explore partnership opportunities.