Roughly 17,000 workers got laid off from 71 tech startups around the world in May—the highest number since the early panic of the pandemic in May 2020, according to data compiled by the tech layoff tracking site Layoffs.fyi. The May layoff total was up 350% from April.
Investors were extremely optimistic about tech startups throughout the pandemic. Tech stocks hit all-time highs, tech startups debuted on the stock market at record valuations, and venture capitalists pumped record levels of investment into the sector, betting that the pandemic would accelerate the adoption of new technology in work and everyday life.
Although startups shed over 50,000 workers in April and May 2020, the layoffs soon slowed to a trickle as tech companies began expanding quickly and competing for talent.
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