Do you see this happening currently to Canadian cybersecurity companies? Or is it really taking place in other tech industries? Seems like many tech companies overestimated their potential, over hired and are now paying the price. What are your thoughts?
The article states:
"Faced with such sudden shifts, tech companies have cut deeply. More than 81,000 people have been laid off from the sector worldwide so far this year, including thousands in Canada, and further cutbacks are likely.
The grim outlook was very much on the minds of attendees at this week's Elevate technology conference in Toronto. "I don't think we have hit close to the bottom yet," said Michele Romanow, a star of TV's Dragons' Den and CEO of Clearco, which pulled out of the European market this summer in addition to laying off staff. "I think tech has seen the first kind of bump in this road and it could get a whole lot worse."
For years, tech companies pounced on opportunities to harness the widespread disruption brought on by smartphones, cloud computing, artificial intelligence and other innovations. They enjoyed near-perfect market conditions to nurture their growth, as interest rates stayed low and risk-taking proliferated.
Venture capitalists, private-equity players and pension funds eagerly handed over billions of dollars in financing to countless young companies on the promise of big long-term returns. The COVID-19 pandemic provided a windfall, as the world turned to e-commerce and all manner of digital life.
But the pandemic boost proved to be the final hurrah of a years-long party, and the hangover is forcing painful changes. Instead of chasing capital and rapid growth at all costs, many businesses are now getting lean and focused, hoping to achieve something sorely lacking in boom times: profits."
Full Globe and Mail article here: https://www.theglobeandmail.com/business/article-canadian-tech-startups-downturn-layoffs/
Founder, Canadian Cybersecurity Network
Founder, Francois Guay & Associatesfrancois@francoismguay.com