Layoffs are expected to continue in 2024. Startups that need to preserve cash to extend their runways are more likely to conduct layoffs.
Tech layoffs will likely slow when we see more down rounds and when the global economy improves. In a down round, a company raises funds at a lower valuation than its previous financing round.
Startups that raised capital during the venture funding heyday at inflated valuations in 2021 are more likely to need to conduct layoffs in 2024.