From Layoff Victims to Founders: How 2022-2023 Layoffs Create The Startup Wave?
The 2022-2023 layoff resulted in the loss of roughly 200,000 jobs. Where did they then go? Some individuals seek new employment, while others choose to be their own boss. According to some, these mass cuts have fostered a new generation of startups. Is this correct? BizReport investigated the profiles of these layoff victims to find the answer to this question.
First, we used layoffs.fyi‘s List of Employees Laid Off to find the LinkedIn accounts of people who had been fired. Then, we went to each LinkedIn page to see if they became founders, presidents, or business owners after losing their jobs.
What We Found
For every 100 people who lost their jobs, 13 started their own companies.
Meta generates the most startups from recent layoffs. One out of every three former workers in Meta start their own business.
Other companies with more than 15% of their former employees becoming entrepreneurs:
- DoorDash | 30%
- Amazon | 25%
- Flexport | 24%
- Twitter | 16%
- Shopify | 15%
After being laid off, software engineers are most likely to start their own companies.
Nine out of one hundred startups are established by former software engineers.
Management-level personnel are more likely to launch a business following a layoff.
44.4% of examined companies were founded by former managers and directors.
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