A wave of layoffs and hiring freezes in the American tech sector is set to hit Canada hard, industry watchers say. They warn that although job cuts have already happened here, bigger reductions lie ahead.
is to focus on increasing the company’s resilience to market downturns and using its capital more efficiently. Ottawa digital gift card-provider Hoppier Inc., which slashed its staff to six people from 21 in March to ensure its nascent business can survive an uncertain funding environment. CEO Cassy Aite said the company generates about $1-million in annual revenue and is still determining whether it has enough market interest in its offerings to allow it to scale up.
One of the latest companies to announce a reduction in force was San Francisco-based Sonder, a short-term rental provider led by Canadian CEO Francis Davidson, which last week cut 21 per cent of its corporate employees and 7 per cent of its front-line staff. Other U.S. tech companies have instituted hiring freezes, including Facebook parent Meta Platforms Inc., Salesforce, Inc. and Intel Corp.
The industry’s new-found austerity contrasts sharply with the previous “grow-at-all-costs” mentality fuelled by cheap capital, COVID-19 stimulus spending and an accelerated shift to digital channels during lockdowns. That led to record venture capital fundraising and a boom in initial public offerings.
When are Canadians going to start realizing there's more to building a strong economy then just resources and commodities.🤨😠
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Hold on a second here. Were they not recently telling people to learn to code?
Industry watchers warn that although job cuts have already happened in Canada, bigger reductions lie ahead.