Fast-growing and often young companies are now announcing layoffs one after the other. Yesterday, fast delivery company Getir announced it would cut more than 4,000 jobs worldwide, or 14% of the total. Earlier this week there were also layoffs at rival Gorillas. Hundreds had been laid off.
And it’s not just about speed cameras. “Many more will follow,” says Janneke Niessen of investment fund CapitalT. Such as in Klarna, which later became known for its online payment: 10% of the staff are laid off there. There have been layoffs on Netflix and a hiring freeze on Facebook. “This is a normal cycle,” says Johan van Mil of the Peak investment fund. “There are also four seasons in nature,” he says. “We are now entering the winter.”
Van Mil believes that companies that “spend a lot of money”, such as flash sellers, should now take a step back. This is how they respond to investors. They have become reluctant due to economic uncertainties such as inflation, the ongoing war and a possible recession. Instead of expecting strong growth and profits in the (distant) future, these investors now want to see short-term gains. A new investment suddenly became uncertain.
But companies with a healthier revenue model must now look at how they can go longer without fresh capital, says Van Mil. In investor jargon: Look† It can save more money or reduce costs. But: “Anyone who can easily earn more has already done so,” says Niessen. Therefore, it remains to save costs. “Nobody knows how long it will take. So you have to prepare for the worst.”
Source: NOS
Smith Charles is a talented entertainment journalist and author at The Nation View. He has a passion for all things entertainment and writes about the latest movies, TV shows, music, and celebrity news. He’s known for his in-depth interviews with actors, musicians, and other industry figures, and his ability to provide unique perspectives on the entertainment industry.
