The tech startups we’re huge before the Coronovirus ambushed us. Startups were beginning to get a lot of attention globally, and investments in this sector were coming in from all corners of the world. The investments we’re justified too as the demand for innovation was on its peak.
It would be wrong to say that the demand for innovation has faded but what would make more sense is to say that the lurking fear of Coronavirus has definitely impeded the growth process. Tech startups are not getting the kind of love they were used to.
Max Azaham from Garter inc. was quoted in the Wall Street Journal stating that “Startups are a great source of innovation in the IT industry, but are now especially cash-constrained”. This quote highlights the present state of the tech sector, and an ensuing result is an increasing number of layoffs.
Tim Herbert, who is the Executive Vice President of research and market intelligence at CompTIA, was quoted in the Wall Street Journal. He said that “Startups developing artificial intelligence and other emerging digital tools fall under the category of tech-sector employers, which have cut jobs for four consecutive months”.
Big companies like Lyft, Uber etc. have laid off a considerable number of employees. Nearly 70000 employees from the respective sector have lost their jobs worldwide.
But this does not mean that it will necessarily be a bad thing. As the employees are being laid off, they are in a position to find their way around things. This mindset is the basic tenet of technology. The layoffs are happening in light of the cash crunch, but this is only temporary. The world has become so increasingly dependent on technology that it cannot relegate from this dependency.
Though the situation will become better than normal eventually but I honestly believe that a lot more startups and innovations will spur out of this unprecedented pandemic. Hence, the tech sector shows a lot more promise than ever before.
The Great Displacement
