Nearly 70,000 tech startup employees have lost their jobs since March, which could be bad news for companies seeking innovative technology solutions, according to The Wall Street Journal.
The layoffs are addressing the economic strain many startups are facing during the pandemic. During the first quarter, worldwide private market funding for startups decreased by 22 percent from last year, according to market research company CB Insights. Additionally, most venture-funded startups cannot access relief checks from the Paycheck Protection Program because the companies that back them are listed as affiliated businesses.
Startups in California's Bay Area alone have eliminated more than 25,000 jobs during the pandemic, following the trend of large-scale staffing cuts set by nearby Uber, Groupon and Airbnb.
Conversely, companies outside the tech sector have increased IT hiring during the pandemic.