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How to Avoid Mediocre Leadership in Trying Times

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As the pandemic reverberates through almost every industry imaginable, tech startups are also feeling the pain.

Since mid-March, countless startups and unicorns have undergone layoffs.

Today’s infographic pulls data from Layoffs.fyi, and navigates the cascading layoffs across 30 of the most recognizable startups in America. Each of the companies have slashed over 250 employees between March 11 and May 26, 2020—capturing a snapshot of the continuing fallout of COVID-19.

Silicon Valley Takes a Hit

Unsurprisingly, many of the hardest hit startups are related to the travel and mobility industry.

Closing 45 offices, Uber has laid off 6,700 employees since mid-March. Uber CEO Dara Khosrowshahi, who was granted a $45M earnings package in 2018, announced he will also waive his $1M base salary for the remainder of the year.

Company # Layoffs % of Employees Industry
Uber 6,700 25% Transportation
Lyft 982 17% Transportation
Bird 406 30% Transportation
Airbnb 1,900 25% Travel
TripAdvisor 900 25% Travel
Sonder 400 33% Travel
TripActions 300 25% Travel
Magic Leap 1,000 50% Consumer
Yelp 1,000 17% Consumer
Juul 900 30% Consumer
Groupon 2,800 44% Retail
Deliv 669 100% Retail
B8ta 250 50% Retail
Toast 1,300 50% Food
ezCater 400 44% Food
Flywheel Sports 784 98% Fitness
MindBody 700 35% Fitness
Opendoor 600 35% Real Estate
WeWork 550 N/A Real Estate
Compass 375 15% Real Estate
ZipRecruiter 400 39% Recruiting
Glassdoor 300 30% Recruiting
Cvent 400 10% Marketing
Sojern 300 50% Marketing
KeepTruckin 349 18% Logistics
Samsara 300 18% Logistics
Eventbrite 500 45% Entertainment
Lending Club 460 30% Finance
Sage Therapeutics 340 53% Healthcare
Automation Anywhere 260 10% Other

*Layoffs reported between March 11-May 26, 2020

Meanwhile, as room bookings dropped by over 40% across several countries, Airbnb laid off a quarter of its workforce. The tech darling is anticipating a $2.4B revenue shortfall in 2020.

Like many other big names—including Lyft, Uber, and WeWork—Airbnb is struggling to achieve profitability. In the first nine months of 2019, it lost $322M at the height of the market cycle.

Until 2021, gig-economy revenues are projected to drop by at least 30%.

International Startups Struggling

Startups in the U.S. aren’t the only ones scrambling to conserve cash and cut costs.

Brazil-based unicorn Stone has let go of 20% of its workforce. The rapidly growing digital payments company includes Warren Buffett as a major stakeholder, holding an 8% share as of March 2020.

At the same time, India-based ride-hailing Ola has witnessed revenue declines of 95% since mid-March. It laid off 1,400 employees as bookings drastically declined.

Company # Layoffs % of Employees Location
Swiggy 1,100 14% India
Agoda 1,500 25% Singapore
Ola 1,400 35% India
Stone 1,300 20% Brazil
CureFit 800 16% India
Uber India 600 23% India
Careem 536 31% U.A.E.
Zomato 520 13% India
Lendingkart 500 50% India
Gympass 467 33% Brazil
OneWeb 451 85% United Kingdom
Livspace 450 15% India
Oriente 400 20% Hong Kong
Renmoney 391 50% Nigeria
Deliveroo 367 15% United Kingdom

Similarly, Uber India has rivaled Ola in dominance across India’s $10B ride-hailing market since launching three years after Ola, in 2013. Now, almost 25% of the Uber India workforce have been laid off.

Of course, these reports do not fully take into account the growing impact of COVID-19, but help paint a picture as the cracks emerge.

Pandemic-Proof?

While the job market remains murky, what startups are looking to hire?

Coursera, an online education startup, listed 60 openings in May. By the end of the year, the company plans to hire 250 additional staff. Within the peak of widespread global lockdowns, the platform attracted 10M new users.

Meanwhile, Canva, an Australia-based graphic design unicorn, is seeking to fill 100 positions worldwide. In partnership with Google for Education, Canva offers project-based learning tools designed for classrooms, in addition to free graphic design resources.

At the same time, tech heavyweights Facebook and Amazon reported openings. Booming startups such as Plaid, Zoom, and Pinterest are also listing new positions as shifting consumer demand continues to shape unpredictable and historic hiring markets.

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Source: https://www.visualcapitalist.com/how-to-avoid-mediocre-leadership/

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