Employees in private tech are 𝗻𝗼𝘁 jumping to new gigs.
Only 32,521 people working at US startups on Carta left their companies by choice in Q4 2024. That's the lowest figure since Q1 2021.
Now, thankfully, the number of employees being laid off has also fallen from peaks (though layoffs remain higher than they were in 2021).
𝗪𝗵𝘆 𝗮𝗿𝗲 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝘀𝘁𝗮𝘆𝗶𝗻𝗴 𝗽𝘂𝘁?
Tough job market. Most startups have pulled back on hiring, both to conserve cash and also because automation is creeping into some job functions.
A (justified) worry that if they take a position at a new company, they may be first in line for layoffs.
Obviously a lack of employee movement has major ripple effects. Startup compensation is largely dictate by supply and demand dynamics - and in this low-demand moment, employee comp will struggle to leap forward.
Everything just feels more uncertain that it has in awhile. Will startups really need far fewer people to build, thanks to AI? Will grown-up tech companies start another round of layoffs? How do we factor in the effects of tariffs and interest rates and the macro climate?
Tricky times.
#startups #startupemployees #layoffs #jobchoice #founders
More data on hiring, layoffs, salary, and equity for startup employees in our State of Startup Compensation report — available now! Ping me in the comments for a link.
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