Commentary: After huge pandemic gains, why are tech companies laying off workers?

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The pandemic offered a big opportunity for tech start-ups to scale. Many prioritised growth over efficiency, says venture outfit Momentum Works’ Yorlin Ng.

During the pandemic, there was a big opportunity for tech companies to scale. Some companies burnt through cash to grow, so efficiency was not the top priority. They hired aggressively to expand as quickly as possible.

For example, Shopee tried many new business models and entered India, Europe and Latin America from 2020 to 2021. The agility in changing tactics and steering into a defensive position is something Chinese and American tech firmshave demonstrated in expanding globally. We are now seeing the same trend in Southeast Asian companies, which could be a sign of growing maturity.It is not all doom and gloom. Venture capital firms in Southeast Asia have raised significant funds and much of this capital remains undeployed.

 

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Tech company laying off workers: Because Ai takes over. Reason : No medical leaves. No annual leave. No complaints. Ai can work longer hours, no lunch break, best of all won't get pregnant.

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