Retrenchments is Accelerating

The current economic downturn has impacted all industries, and the tech sector has not been immune to rising interest rates globally and rising inflation.

One of the latest tech companies locally in Australia has been Linktree which has reduced its headcount by 17% of its workers, with the social media start-up’s founder confirming the latest layoffs. Linktree’s layoffs are just the latest in what is shaping up to be a global tech slump.

In May and June, streaming giant Netflix sacked three hundred personnel (or 4% of its staff) in the second round of task cuts after losing subscribers for the first time in over a decade, following one hundred fifty jobs lost the month earlier.

Tech companies are facing supply chain constraints impacting revenues and putting margins under pressure.

As of early August, more than 34,000 workers in the US tech sector have been laid off in mass job cuts in 2022, according to a Crunchbase News analysis.

Outsourcing can form a key part of IT companies trying to streamline cost bases and stabilise operations through these turbulent times.

Team SBA can assist tech companies with a range of back-office support services and deployment of IT resources from a vast resource pool with significant cost savings.

Source: Smartcompany