We’ve seen massive companies lay off record breaking numbers of people. Some noteworthy mentions are:
- Amazon layoffs: 1% of workforce laid off beginning (November 2022)
- Meta layoffs: 13% of workforce laid off (November, 2022) Their biggest layoff in the company’s history.
- Twitter layoffs: 50% of workforce laid off (November, 2022)
- Zillow layoffs: 5% of workforce laid off (October, 2022)
- Peloton layoffs: 12% of workforce laid off (October, 2022)
- DocuSign layoffs: 9% of workforce laid off (September, 2022)
- Taboola layoffs: 6% of workforce laid off (September, 2022)
- Snapchat layoffs: 20% of workforce laid off (September, 2022)
At AdAstra Talent Advisors we work with NewSpace and clean tech startups which means we have a very intimate view of the labor market for these arenas. Before these layoffs started happening, the labor market was squeezed pretty tight and candidates had a lot of bargaining power. We were seeing salaries rise faster than predictions could keep up. Hiring top talent was really difficult to do as big companies were offering sometimes double or triple the salaries that startups were able to.
Over the past 12 months 70% of companies in the aerospace and defense sector saw increased turnover (Aerospace Industries Association). That rising compensation I was just talking about? That was the top driver in this sector for turnover – people were leaving their jobs to make more money.
So how will the recent softening of the labor market impact aerospace and defense? Will the excess talent that is available due to layoffs in the tech sector increase the supply of quality candidates for space startups? Or is the skillset not incredibly transferable?
Will the reduced demand in the tech sector slow down or decrease market rates for people who do have the transferable skills, making them more affordable for startups?
Will the layoffs in other sectors cause people who are currently employed to stay at larger, more established companies in hopes of more stability and reliability during waves of layoffs? Or will candidates see well funded startups with passionate leaders who have a clear vision, the ability to be a name – not a number to the organization, and the ability to have direct influence in the success of a company a better ship to ride the waves of the current economy?
What do you think? Tell me all about it!
