The tech company layoffs have hit Europe. Several of Europe’s best-known startups have made drastic cuts to their teams in order to cut costs and preserve their cash runway as the global economy takes a downturn.
Tech stocks have crashed on public markets, and private company valuations have taken a hit as a result. Investors are writing cheques more cautiously while urging their portfolio companies to preserve cash. Consumers are also beginning to watch their pennies, putting B2C startups in an especially tight position.
That means it’s an unfortunate time to be out raising funding — and particularly bad timing if you’re a scaleup with a big monthly burn rate. The tech company layoffs started with the likes of fintech giant Klarna, speedy grocery poster child Gorillas, online events platform Hopin and digital health company Kry. They’ve since spread rapidly across sectors.