Mass tech layoffs spur startup wave, says BizReport
COPENHAGEN, DENMARK — Massive layoffs in the tech industry during 2022 and 2023 resulted in a wave of new start-ups, according to a study by online media company BizReport.
The research found that out of the approximately 200,000 people who lost their jobs, 13 in every 100 started their own companies.
The study used data from layoffs.fyi and LinkedIn profiles to trace the career paths of tech employees who lost their jobs during the specified period.
It found that layoffs at Meta resulted in the highest percentage of new startups, with one-third of its former employees becoming entrepreneurs.
Other tech giants also spurred start-up creation, with 30% of former DoorDash employees, 25% of Amazon, 24% of Flexport, 16% of Twitter, and 15% of Shopify ex-staff starting their ventures.
BizReport added that out of all tech roles, software engineers were the most likely to be entrepreneurs post-layoff, accounting for nine out of every hundred startups.
Regarding management hierarchy, former managers and directors were more likely to launch businesses after layoffs, founding 44.4% of the new companies examined.
