Tech Layoffs Remain Ongoing, But What’s Happening to the Actual Employees?

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Tech Layoffs Remain Ongoing, But What’s Happening to the Actual Employees?
Evan Xie

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Less than halfway into 2023, global layoffs from the technology sector have already surpassed 2022’s total. An estimated 197,000 tech employees around the world have lost their jobs so far this year, according to data compiled by Layoffs.fyi, and the overall tally has multiplied seven-fold so far this year. It’s still not over! Meta told employees just this week to expect even more cuts which could impact thousands more people, while British telecom Vodafone announced plans to slash 11,000 jobs over the next three years.


But while the layoffs themselves, and perhaps the companies’ adjustments to moving forward with a much smaller workforce, get the lion’s share of the headlines, one question still remains: Just what’s going to happen to all these newly laid-off people? When one or two big firms gets into trouble, it’s sort of assumed other big players in the industry will grab top talent that’s suddenly freed up. But will there be enough tech jobs for all the people leaving their former companies this year?

Leaving Tech Altogether

Recode points out that many people who work for tech companies are not technologists by trade, and may be able to pivot into other gigs with relative ease. Google’s recent layoffs from their California HQ, for example, included 30 in-house massage therapists, who don’t necessarily need to jump over to another job in tech. According to data from CompTIA, around 59% of Americans with technical jobs don’t actually work in the technology industry, but are in other fields like finance, health care, or retail. It’s likely that, at least to some extent, these jobs will soak up some of former Googlers and Metakateers, or whatever you call people who work at Meta.

At least some laid-off workers with actual technical jobs are also abandoning tech entirely and seeking employment in new fields. Vice recently caught up with a few castoffs who have enjoyed transitions into totally different kinds of work: at wineries, neighborhood retail shops, fashion startups and elsewhere. Meanwhile, The Baltimore Sun compiled labor and survey data to find that many tech workers are jumping into jobs in education, commercial banking, manufacturing, or telecommunications.

Developers and Engineers Move from Large Tech Companies to Small Startups

Still, this is unlikely to be a solution for the majority of people who are losing their Twitter, Meta, and Google gigs this year. Most recruiters agree that laid-off tech workers – particularly people in highly-skilled jobs like software developers, engineers, and data scientists – don’t really want to give up on the kinds of cutting-edge work they were doing for other kinds of employment that might seem a touch more mundane. As Honeywell software executive Kevin Denoff – who has actively been recruiting Big Tech workers – told The Wall Street Journal this week, “if you’re a young hotshot code developer, Honeywell may not be on your list of top five or ten companies that you want to work for.”

Ultimately, it seems like tech workers will likely remain somewhere within the industry moving forward. They’ll likely just have a bit less job security – and fewer creature comforts – while they do it, at least for a while.

According to a report last week in The Wall Street Journal, many of the more highly-skilled tech workers we mentioned – the developers and engineers – are moving from the largest tech companies over to small startups, building new projects from the ground up. Scott Ruffin of e-commerce delivery startup Pandion Pro told WSJ that, while his company can’t necessarily compete on wages alone, they’re able to attract top-quality talent “because what we’re doing is different.” By some estimates, around 40% of laid-off tech workers have found new jobs at startups or smaller employers over the last nine months.

From Full Time Employees to Gig Workers

The Seattle Times caught up recently with a number of laid-off Amazon staffers who have been recruited for part-time or consulting work by their former employer. It’s maybe a touch indelicate; one staffer reports responding back to the job offer by recommending that Amazon simply not fire her in the first place, while another found themselves explaining repeatedly to recruiters on the phone that they were unwilling to trade in full-time work for freelance gigs. From Amazon’s perspective, they prefer when consultants or part-timers have applicable prior experience and, according to a spokesperson, they don’t consider contract workers as replacements for full-time workers.

Entrepreneurship Blooms

For those who don’t wish to take less steady, lower-paying jobs at their former offices, other laid-off workers apparently hope to rebound by starting their own technology companies. A survey of 1,000 laid-off tech workers from Clarify Capital LLC earlier this year found that 63% of respondents planned to start their own company after being laid off. Meanwhile, incubator Y Combinator reports that their number of new applicants jumped 20% in 2022 and will likely see an even bigger spike this year. According to Yahoo! Finance, there are also some early indicators that laid-off tech workers may be selling off their saved-up private shares in order to fund new ventures.

Through no fault of their own, these new entrepreneurs are entering the startup world at a particularly challenging moment. Venture capitalists and growth investors have been majorly scaling back their investments this year. According to Crunchbase, global funding in Q1 of 2023 was around $76 billion, a 53% decline over the same period in 2022. That’s a tricky time for even established founders to raise funding, let alone newcomers who are entering the space because they recently lost their previous gigs. As well, more established players in the startup world can plan out their next projects over several years, and time their raises for the most opportune moments, whereas people who have recently lost their jobs are in a more time-sensitive, high-pressure personal situation.

Still, with the potential rewards remaining so high, a lot of aspiring founders are willing to accept a high level of risk. With so many tech workers turning recent setbacks into new opportunities, the stormy economic forecasts of 2022 and 2023 may yet lead to a silver lining. Even for someone other than Amazon.

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This Week in LA: Robotaxis, Reels & a $100K Challenge

🔦 Spotlight

Happy Friday, LA,

It’s Coachella Weekend 2, which means fewer cars on the road, easier restaurant reservations, and just enough quiet to hear the next wave of innovation humming through the city. This week, we’re watching more driverless cars roll in, Instagram remix your Reels feed, and a $100K climate challenge call for startups. Let’s get into it.

🚕 Zoox Is Bringing Its Robotaxis to LA

Image Source: Zoox

Amazon-owned Zoox just announced that its futuristic, steering wheel–less robotaxis are heading to Los Angeles. The company has begun mapping the city as it gears up to launch a fully autonomous ride-hailing service. These aren’t retrofitted Teslas; they’re bidirectional vehicles built specifically for autonomy, with no front, no back, and no driver seat.

It’s Zoox’s first major push beyond Northern California and Las Vegas, and it's a signal that LA is being positioned as a proving ground for next-gen transportation. As the city preps for the 2028 Olympics, Zoox is hoping to help LA reimagine what mobility looks like without a human behind the wheel.

👀 More on that here:Zoox’s LA Expansion

💬 Instagram’s New “Blend” Feature

Image Source: Instagram

Instagram just announced “Blend,” a new feature that creates a private Reels feed curated for you and a friend based on your shared interests. It’s like a personalized explore page, but just for two. Think Spotify Blend, but with more memes and fewer breakup ballads.

It’s currently in testing, but if rolled out broadly, Blend could change how creators build community and how content spreads in smaller, more intimate algorithmic circles.

🔥 LACI Launches the LA Resilient Rebuilding Cup

100 days after the Palisades and Eaton fires swept through parts of LA, the Los Angeles Cleantech Incubator (LACI) is launching a new initiative: the LA Resilient Rebuilding Cup. It’s a pitch competition aimed at finding startup solutions to help LA rebuild stronger and greener.

Up to $100,000 in prizes and piloting funds are up for grabs. Finalists will pitch live on July 10 in Downtown LA, and selected winners will get the opportunity to bring their technologies to fire-affected communities. Focus areas include fire detection, renewable energy, air quality, mental health tools, resilient construction, and more.

Startups have until May 30 to apply.
📍 Apply here


🤝 Venture Deals

LA Companies

  • Parallel Systems, a Los Angeles-based company developing autonomous battery-electric railcars, has raised $38M in a Series B funding round led by Anthos Capital, with participation from Riot Ventures and others. The funding will support the commercialization of its technology, including the launch of its first commercial pilot in Georgia. This pilot, approved by the Federal Railroad Administration, will test self-propelled intermodal flatcars over a 160-mile stretch, aiming to offer a more efficient and sustainable alternative to short-haul trucking. Parallel Systems plans to use the funds to scale production of its Generation 3 vehicles and expand operations in the U.S. and Australia. - learn more

LA Venture Funds

  • Bonfire Ventures led a $7.5M seed funding round for 1Fort, a New York-based startup that automates commercial insurance workflows for brokers using AI. Village Global and others participated in the round. 1Fort's platform streamlines the insurance process by automating tasks such as application completion, quote retrieval, and policy binding, helping brokers secure better coverage for clients more efficiently. The funds will be used to enhance the platform's AI capabilities, expand the team, and grow partnerships with carriers and brokers across the U.S. - learn more
  • Strong Ventures led an ₩800 million pre-Series A funding round for LunchLab, a Seoul-based B2B startup offering corporate lunch subscription services. LunchLab provides daily lunchbox deliveries and post-meal dish collection for companies, streamlining office meal logistics. The funds will be used to expand production capacity, enhance delivery operations across Seoul, and improve their proprietary ordering app. - learn more
  • CIV participated in Crux's recent $50M Series B funding round, supporting the company's mission to streamline financing for clean energy and manufacturing projects. Crux, based in New York, operates a capital markets platform that facilitates transactions such as transferable tax credits and debt financing, aiming to enhance liquidity and efficiency in the clean economy sector. The newly acquired funds will be utilized to expand Crux's network of market participants, enhance its software infrastructure, and scale its operations to meet the growing demand for clean energy financing solutions. - learn more
  • Finality Capital Partners participated in the $11M seed funding round for Optimum, a startup incubated at MIT and based in Cambridge, Massachusetts. Optimum is developing a decentralized memory layer for Web3, utilizing Random Linear Network Coding (RLNC) to enhance data storage and propagation across blockchain networks. The funds will be used to advance Optimum's technology and expand its team to address scalability challenges in decentralized systems. - learn more
  • TIME BioVentures participated in Phantom Neuro's recent $19M Series A funding round. Based in Austin, Texas, Phantom Neuro is developing a minimally invasive neural interface called Phantom X, designed to enable intuitive control of prosthetic limbs and robotic exoskeletons. The new funding will support the company's first human trials, preclinical testing, regulatory submissions, and expanded research and development for broader applications of its technology beyond prosthetic limbs. - learn more
  • Veridical Ventures participated in a $2M seed funding round for SlashExperts, a San Francisco-based B2B platform that connects prospective buyers with existing customers to facilitate authentic peer conversations. This approach aims to build trust and expedite sales processes. The funds will be used to enhance the platform's features, ensuring seamless and effective connections between buyers and users. - learn more
  • F4 Fund participated in Boby.ai's $1.25M seed funding round, supporting the Istanbul-based startup's mission to develop AI-powered mobile applications. Boby.ai, founded by Gökçe Nur Oğuz, Onur Olgun, and Berat Oğuz, focuses on creating user-friendly AI tools for end-users, such as their flagship app Mozart.ai, which enables users to generate personalized music using AI. The funding will be used to expand the team and develop new AI-based mobile products. - learn more
  • Riot Ventures and Impatient Ventures participated in Blue Water Autonomy's recent $14M seed funding round. Based in Boston, Massachusetts, Blue Water Autonomy is developing fully autonomous, unmanned ships designed to operate on the open ocean for extended periods. The company plans to use the funds to expand its engineering team, accelerate ship testing, and integrate various payloads onto its platform. - learn more
  • Aliavia Ventures led a $1M pre-seed funding round for InsightWise, an AI-powered platform based in Sydney, Australia, designed to streamline the consulting process by automating tasks such as proposal development and strategy creation. The funding will be used to enhance the platform's capabilities and support expansion into the U.S. market. - learn more

LA Exits

  • Pex, a leading provider of digital rights technology, has been acquired by Vobile, a global leader in digital content protection and transaction services. This acquisition enhances Vobile's services for the music industry and strengthens its position as a global solution provider for digital audio content. - learn more

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Rain's Latest Funding Fuels the Future of Financial Wellness

🔦 Spotlight

Happy Friday,

This week, the LA tech scene buzzed with news that Rain, a leader in financial wellness, hassecured $75 million in Series B equity funding, spearheaded by Prosus. This isn't just another funding round; it's a pivotal chapter in Rain's mission to transform how American workers interact with their earnings.

Since its inception, Rain has been at the forefront of innovation in financial technology, particularly with its earned wage access solutions. The concept was simple yet revolutionary: allow workers to access their earned wages instantly, mitigating financial stress and dependency on high-interest payday loans. This vision quickly gained traction, propelling Rain from a promising startup to a key player in the fintech space.

What makes this Series B funding particularly noteworthy is what it represents on a larger scale. It's not just an influx of capital but a strong endorsement of Rain's potential to expand even further. With previous rounds fueling their initial growth and strategic partnerships, such as their notablecollaboration with Marqeta to enhance payment technologies, Rain has steadily built a foundation not just for success but for significant impact.

As Rain secures this significant new funding, their initiative to reshape financial wellness is set to expand dramatically, showcasing the profound impact tech can have on everyday financial challenges.

Looking forward to seeing how their innovations will drive change in the financial landscape.

🤝 Venture Deals

LA Companies

  • Dosen, a Los Angeles-based HRtech startup founded by Ronan Wall, Victor Burke, and Cian McCarthy, has secured $2.3M in an oversubscribed pre-seed funding round led by Affinity Ventures. The company offers an AI-powered platform that aligns employee-led learning with business goals through personalized, gamified development programs. The funds will be used to scale the platform, enhance AI-driven personalized learning, and improve employee engagement and productivity. - learn more
  • Plug, a Santa Monica-based company operating an EV-exclusive wholesale online auction platform, has secured $6.7M in an oversubscribed seed funding round led by Floodgate, Autotech Ventures, and A*. The company has also launched Plug Trade Desk™, the first EV-focused service designed to help dealers confidently price, move, and monetize trade-ins. The newly acquired funds will be used to enhance Plug's technology and expand its services, aiming to support dealers in navigating the growing used EV market. - learn more
  • Gallatin AI, a defense tech startup, has raised $15M in seed funding led by 8VC to scale its AI-powered logistics platform, Navigator. The tool helps military logisticians predict, plan, and execute operations more efficiently in contested environments. Funds will be used to expand the team and deploy the platform across military services. - learn more
  • BLNG AI, a generative AI platform based in Los Angeles and Paris, raised $3M in seed funding led by Speedinvest to streamline jewelry design by turning sketches into photorealistic renderings and animations. The funding will support commercialization, team expansion in Europe and the U.S., and the launch of a subscription-based app for luxury brands and independent jewelers. - learn more
  • Amca, a newly launched aerospace company focused on modernizing the industrial supply chain, has raised $76M in funding from investors including Caffeinated Capital, Founders Fund, Lux Capital, Andreessen Horowitz, and others. The company plans to acquire specialized suppliers and develop new aerospace products, aiming to strengthen and future-proof the sector’s manufacturing and innovation capabilities. - learn more
  • Turbine Finance Corp., a Santa Monica, California-based data science-driven liquidity platform, has raised a total of $21.75M in equity funding, comprising a $13M Series A round co-led by Alpha Edison and TTV Capital, and a previously unannounced $8.75M seed round with participation from Fin Capital, B Capital, and Sozo Ventures. Additionally, the company secured up to a $100M warehouse facility from Silicon Valley Bank to provide credit facilities to venture investors. The combined funding of $121.75M will be used to deploy the warehouse line and expand Turbine's data science team. Turbine's platform enables private equity and venture firms to offer limited partners access to the value of their portfolio investments without reducing exposure, leveraging machine learning to expedite underwriting processes. - learn more
  • Gente Beauty, an innovative Brazilian body care brand, has received a lead investment from Webster Capital, a private equity firm specializing in consumer and healthcare sectors. This partnership aims to support Gente Beauty's growth and expansion in the beauty industry. - learn more
            LA Venture Funds
            • Alexandria Investment Partners participated in a $41M Series A round for Solu Therapeutics, a Boston-based biotech company developing targeted protein degradation therapies. The funding will advance its lead candidate, STX-0712, which recently entered a Phase 1 clinical trial for CMML and other advanced blood cancers. - learn more
            • Calibrate Ventures participated in SigIQ.ai's $9.5M seed funding round. SigIQ.ai, based in Berkeley, California, is an AI tutoring startup focused on providing personalized education through advanced AI models. The funds will be used to hire top talent, enhance their AI models, and scale their platforms to educational systems worldwide. - learn more
            • Rusheen Capital Management participated in Zero Industrial's $10M Series A funding round, aiming to accelerate the development of thermal energy storage solutions in North America. Zero Industrial focuses on deploying large-scale thermal energy storage projects to enhance energy efficiency and support decarbonization efforts. The funding will be used to expand their project pipeline and advance the commercialization of their technology. - learn more

            LA Exits

            • Bread Beauty Supply has been acquired by Cost of Doing Business (CODB), a holding company founded in 2024 by Topicals founder and CEO Olamide Olowe and president Sochi Mbadugha. The acquisition aims to expand Bread's retail presence in the U.S., starting with an increased footprint in Sephora stores. Founder Maeva Heim will continue as Chief Creative Officer, focusing on the brand's creative direction, while CODB will manage strategic operations. This move reflects CODB's commitment to supporting Black-owned businesses and fostering diversity in the beauty industry. - learn more

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                          El Segundo Startup Turns Tax Credits into Big Business

                          🔦 Spotlight

                          Hello LA,

                          Step into the world of Incentify, the El Segundo-based innovator turning the headache of managing tax credits and incentives into a walk in the park. Founded in 2019, this trailblazing company is reshaping how businesses approach what was once a daunting bureaucratic challenge.

                          Incentify’s platform is revolutionizing the industry by helping businesses discover and effectively manage a share of the estimated $1.2 trillion in tax credits and incentives that often go unclaimed each year. This critical service not only simplifies the process but also ensures that companies can more easily access and leverage these financial opportunities to fuel their growth and sustainability initiatives.

                          Recently, Incentify reached a new milestone by securing $9.5 million Series A funding led by Innovent Capital Group. This significant investment underscores the market’s confidence in their innovative approach and supports their mission to expand their technological capabilities and market reach.

                          As Incentify gears up for this expansion, their efforts are set to make tax incentives more accessible to a broader spectrum of businesses. This is especially vital in today’s economy, where optimizing financial strategies is crucial for business resilience and growth.

                          Incentify's success story from El Segundo is not just about financial gains but also about empowering companies with the tools to turn complex financial engagements into strategic advantages.

                          Stay tuned for more from LA’s vibrant tech scene. Let’s continue to push the boundaries of what’s possible.

                          Enjoy your weekend, and keep innovating, LA!

                          🤝 Venture Deals

                          LA Companies

                          • TOGETHXR, a pioneering women's sports media and commerce brand co-founded by athletes Alex Morgan, Chloe Kim, Simone Manuel, and Sue Bird, has achieved profitability and significant growth, including tripling its year-over-year revenue and increasing its social media following by 17% year-to-date. The company has secured additional growth capital in a funding round led by Alex Morgan's Trybe Ventures. The funds will be used to expand TOGETHXR's presence in the women's sports marketplace. Additionally, media executive Nancy Dubuc has joined the company as Executive Chair, bringing her extensive experience to support TOGETHXR's mission of elevating women's sports and culture. - learn more
                          • Airvet, a Los Angeles-based pet telehealth platform, has secured $11M in an oversubscribed Series B-2 funding round led by HighlandX. This investment follows a year of significant growth, including a 4x increase in year-over-year revenue and a tripling of its client base. Airvet partners with leading employers across various industries, such as PepsiCo, Adobe, and Lyft, to provide employees with 24/7 access to veterinary care via video or chat. The platform's services include online pharmacy, e-prescriptions, discounted pet insurance, wellness programs, and specialty care, with recent expansions into Spanish and French language support. The funds will be used to further enhance Airvet's platform and expand its reach, aiming to make veterinary care more accessible and affordable for pet families globally. - learn more
                                  LA Venture Funds
                                  • Interlagos co-led a $50M Series A funding round for Aetherflux, a San Carlos, California-based startup developing satellites to collect and transmit solar energy from space to Earth. The funds will be used to expand Aetherflux's engineering team and advance the technology for its planned low Earth orbit demonstration mission in 2026. - learn more
                                  • Bungalow Capital Management co-led a $2M seed funding round for Juno, a Denver-based startup specializing in corporate guest travel management. Juno offers an integrated platform that streamlines booking, logistics, payments, reimbursements, and support for non-employee travelers such as job candidates, contractors, and customers. The funds will be used to accelerate product development and expand partnerships, including a collaboration with ALTOUR as their first travel management company partner. - learn more
                                  • Veridical Ventures co-led a $3.75M seed funding round for Flagship, a Sydney, Australia-based retail technology company specializing in visual merchandising solutions. Flagship's platform creates digital twins of retail stores, enabling data-driven optimization of product placement and store layouts to enhance sales performance. The funds will be used to expand Flagship's presence in the U.S. market and further develop its product offerings. - learn more
                                  • Miroma Ventures participated in a £6.5M Series A funding round for Limitless Travel, a Birmingham, UK-based company specializing in accessible holidays for individuals with disabilities. Founded in 2015 by Angus Drummond, who was diagnosed with muscular dystrophy at 22, Limitless Travel offers curated group holidays with trained carers, ensuring accommodations and excursions meet specific accessibility needs. The investment will enable the company to enhance its technology, expand its range of destinations, and lay the groundwork for international growth, aiming to transform the lives of disabled individuals through travel. - learn more
                                  • B Capital participated in a $20M Series A funding round for Gable, a Seattle-based company specializing in data management solutions. Gable's platform focuses on "shifting left" in data management by enabling software and data developers to collaboratively build and manage high-quality data assets through API-based data contracts. The funds will be used to accelerate product development and expand Gable's team to meet the growing demand for data collaboration tools. - learn more
                                  • Rebel Fund participated in a $3.8M funding round for Sohar Health, a health technology company. Sohar Health is developing an AI-powered platform designed to streamline patient intake and triage, aiming to enhance access to healthcare services. The funds will be used to accelerate product development and expand the company's reach within the healthcare industry. - learn more

                                      LA Exits

                                      • Tixologi, a next-generation ticketing platform, has been acquired by Punchup Live, a New York-based comedy platform. This strategic move integrates Tixologi's advanced ticketing technology into Punchup Live's ecosystem, enabling seamless, direct-to-fan ticket sales for comedians and venues. The acquisition aims to enhance the ticket purchasing experience by providing features such as fast checkout, unified outreach tools, and advanced anti-scalping solutions, thereby empowering comedians to connect more effectively with their audiences. - learn more
                                      • InVisit, a Calabasas, California-based provider of cloud-based visitor management solutions, has been acquired by Motorola Solutions. InVisit's platform streamlines visitor registration, access, and host notifications across sectors such as commercial offices, education, and healthcare, enhancing security through features like blocklist screening and real-time guest activity insights. This acquisition aims to integrate InVisit's capabilities into Motorola Solutions' Avigilon Alta security suite, offering enterprise customers a unified, cloud-native approach to managing security threats and improving operational efficiency. - learn more

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