Getting hired at a startup is no easy feat these days.
The chart above shows net headcount changes at US startups on Carta (that's 50,000+ companies these days).
Net headcount is defined as the number of new hires in a quarter minus the number of employees who left (either by choice or through layoff).
So, on the plus side, headcount is growing at startups! Just the tiniest bit!
But in reality, net headcount over the last 10 quarters up to mid-2025 has grown by 68,000 or so, which is less than it grew every quarter in 2021.
Were we overhiring then? Certainly. Are companies today more capital efficient in payroll than they've been in a decade or more? Yes.
But it is a startling sight to see founders remaining so conservative on hiring when funding has re-opened, especially for the hot AI startups. I personally hope there's still space for young and eager people to join startups —I really can't imagine what I'd be doing today if not for a founder taking a chance on me years ago.
Onwards!
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Cheers, Peter Walker
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