Did the layoffs in 2022-2023, which led to around 200,000 job losses, prompt a shift in career paths? Where did these individuals end up? According to a recent study by BizReport, some opted for new jobs, while others pursued entrepreneurship. These widespread job cuts spurred the emergence of a fresh wave of startups.
In an effort to verify this assertion, BizReport undertook a thorough examination of the backgrounds of these individuals who were let go from their jobs. After going through layoffs.fyi's List of Employees Laid Off and conducting a thorough search of the LinkedIn profiles of the affected individuals, BizReport contacted each LinkedIn page to determine whether they transitioned into roles as founders, presidents, or business owners subsequent to their job terminations.
In their findings, they discovered that for every 100 people who lost their jobs, 13 embarked on their own entrepreneurial ventures. Regarding recent layoffs, Meta emerged as the top generator of startups. Notably, one out of every three former workers at Meta chose to initiate their own businesses.
Other companies experienced a similar trend, with over 15% of their former employees venturing into entrepreneurship:
- DoorDash - 30%
- Amazon - 25%
- Flexport - 24%
- Twitter - 16%
- Shopify - 15%
According to the report's findings, software engineers are the most inclined to start their own companies after being laid off. Out of every one hundred startups, nine are established by former software engineers.
Furthermore, the report indicated that individuals in management-level positions are more prone to initiating a business after experiencing a layoff. Specifically, 44.4% of the analysed companies were founded by former managers and directors.